Mutual funds resume lumpsum investments in silver ETF fund-of-funds

Fund houses including Tata, HDFC, Kotak and Aditya Birla Sun Life lift curbs on silver ETF FoFs as supply pressures ease and premiums stabilise

Mutual funds (MFs) have lifted restrictions on investments in silver exchange-traded fund (ETF) fund-of-fund (FoF) schemes as supply constraints have eased and premiums in the silver market have normalised.

 

Tata MF among first to resume investments 

Tata MF on Friday said it had resumed taking lumpsum investments into its silver FoF. “Considering the normalisation of market conditions, it has been decided to resume all lumpsum investments, switch-ins, and new SIP/STP registrations into the scheme effective October 24, 2025,” it said.

 

Other fund houses follow suit 

Other fund houses that had closed their ETF FoFs citing market dislocation have also opened their schemes for fresh investments. Since October 20, Aditya Birla Sun Life, HDFC, Kotak, and Axis have lifted the restrictions. Only SBI is yet to open its silver ETF FoF for lumpsum and switch-in investments.

 

 

Silver premiums ease after global price correction 

Silver ETFs had traded at premiums of 5–10 per cent for five straight sessions starting October 9, after global silver prices crossed the $50-per-ounce mark. The gap, caused by a global shortage of physical silver, led several fund houses to temporarily stop taking new inflows into their silver fund-of-funds.

 

However, the premiums settled soon after as the supply shortage eased.

 

The demand has also moderated, according to analysts, as prices have corrected globally. Silver ETF prices are down over 20 per cent from their all-time highs achieved on October 15.