UTI AMC Suspends Fresh Investments in Silver ETF Fund of Fund

UTI Asset Management Company has temporarily halted fresh lump-sum and switch-in investments into its UTI Silver ETF Fund of Fund, effective October 13, 2025. The move comes amid market disruptions and a tightening supply of physical silver in India.

Silver Shortage and Market Premiums Cited

The fund house attributed the suspension to prevailing market conditions and a shortfall in domestic silver supply. Silver is currently trading at a premium to international prices, making it difficult to fairly value the scheme. “The premium in domestic silver prices directly impacts the valuation of the scheme,” UTI said in its statement.

UTI is not alone. On October 9, Kotak Mahindra Asset Management Company also imposed a temporary ban on new investments in its Silver ETF Fund of Fund. Kotak expects the situation to ease post-Diwali, once supply chains normalise.

Also Read: Kotak Mutual Fund Halts Lumpsum Investments in Silver ETF FoF Amid High Premiums

Record Silver Prices Fuel Investment Demand

Spot silver surged to a record high of $51.22 per ounce on Thursday, breaking the previous $51 barrier for the first time.

In India, bullion dealers noted a premium spike of up to 10% above official domestic prices. The surge is being driven by strong pre-festival investment demand and limited availability of the metal.

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