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HDFC Mutual Fund has announced a temporary restriction on new subscriptions to its HDFC Silver ETF Fund of Fund (FoF) following heightened volatility in silver prices. The fund house said the decision aims to protect the interests of investors during the ongoing fluctuations in the precious metal’s market.
According to an addendum issued on October 15, 2025, HDFC Mutual Fund will accept new lump-sum purchases, switch-ins, and systematic registrations, such as Systematic Investment Plans (SIPs) or Systematic Transfer Plans (STPs), only up to a limit of Rs 1 lakh per PAN per day. The restriction came into effect after the cut-off time of 3:00 p.m. on October 14, 2025, and will remain in place until further notice.
The latest development comes a day after ICICI Prudential MF announced halting of fresh allocations to silver ETF FoFs amid escalating premiums on domestic silver. Earlier, Kotak, UTI, SBI Tata and Groww Mutual Funds had taken similar steps, citing market distortions and supply constraints.
These fund houses have flagged concerns that sharply rising domestic silver prices trading at a premium over international benchmarks are exerting pressure on the schemes’ valuations.
Existing SIPs and redemptions unaffected
The HDFC MF has stated that all current SIPs, STPs, and other systematic transactions will continue to be processed normally in spite of the most recent restriction. Furthermore, switch-out and redemption transactions will not be impacted. During this brief time, all other HDFC Silver ETF Fund of Fund terms and conditions will remain the same.
The announcement comes at a time when silver prices have shown considerable volatility in global markets, prompting several fund houses to review their exposure and risk management policies in precious metal-based schemes.
Manisha Lal Khandpur is a News Editor at Moneycontrol where she works on the Desk and Special Projects. She pursued journalism at Bhartiya Vidya Bhawan, Delhi, and has an extensive career spanning 17 years across Digital Media, Broadcast, and Radio. Previously, she was a News Editor at Editorji, managing the desk, and a Principal Content Producer at Times of India, leading news shifts. She has also been a Senior Correspondent at Bhaskar, P7, and Live India. She has briefly been a part of academia, bringing her industry expertise into the educational sphere.