SBI MF Suspends New Lumpsum Investments in Silver ETF FoF

SBI Mutual Fund has temporarily suspended fresh lump sum investments in its SBI Silver ETF Fund of Fund (FoF). This suspension, which will be effective from October 13, 2025, is a response to a sharp surge in silver demand & forced physical supply. 

The fund house said in an official notice that macroeconomic factors and growing investor interest in commodities are responsible for the recent increase in silver prices. However, the creation of new ETF units at the significant NAV (Net Asset Value) has been restricted due to the limited availability of physical silver, leading to measures that safeguard investor interests.

The SBI Silver ETF FoF is an open-ended FoF scheme that invests in the SBI Silver ETF and tracks domestic silver prices. The official notice stated, "The surge in domestic silver prices directly affects the valuation of the SBI Mutual Fund Scheme."

According to the Scheme Information Document (SID), the suspension will affect all new subscriptions made as a lump sum, including extra purchases and switch-ins. However, existing investments made through SIPs (Systematic Investment Plans), STPs (Systematic Transfer Plans), redemptions and switch-outs will continue as usual.

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The SBI mutual fund clears the air by saying that the suspension is temporary and will remain in effect until further notice. All other terms & conditions of the scheme remain unchanged. The notice was issued from Mumbai on October 11, 2025, and signed by Nand Kishore, Managing Director & CEO of SBI Funds Management Limited. 

Investors are advised to pay attention to this update and read all scheme-related documents carefully before making any investment choices.

Earlier today, the UTI Mutual Fund also announced that it will temporarily stop accepting new subscriptions for its Silver ETF Fund of Fund (FoF) starting October 13, 2025. In a week, this is the second asset manager to pause new investments in its silver-based mutual fund schemes. This decision follows Kotak Mutual Fund's similar suspension of its silver ETF FoF. These suspensions by fund houses have raised concerns about increasing market volatility & potential regulatory changes affecting silver investments.

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