Silver ETF FoF: Which mutual funds accepting and not accepting fresh investments
The silver investment rush that followed the launch of silver exchange-traded funds (ETFs) in 2022 is now hitting a pause. Several mutual fund houses have temporarily suspended new investments particularly lumpsum and switch-ins in their Silver ETF Fund of Funds (FoFs), citing underlying liquidity concerns in the physical silver market.
According to data available till October 14, 2025, at least seven major mutual fund houses have suspended fresh lumpsum investments and switch-ins in their Silver ETF FoFs. However, some are still allowing SIP (Systematic Investment Plan) contributions to continue.
Who’s not accepting fresh investments
Kotak Mutual Fund, SBI Mutual Fund, UTI Mutual Fund, and Groww Mutual Fund have all suspended fresh lumpsum and switch-in transactions in their Silver ETF FoFs. However, these fund houses continue to allow SIP investments both for existing and new investors.
The restrictions were introduced in phases starting from October 10, with SBI, UTI, and Groww implementing them on October 13, following Kotak’s initial suspension.
On the other hand, Tata Mutual Fund and ICICI Prudential Mutual Fund have gone a step further as both have completely suspended all new investments, including lumpsum, switch-ins, and SIPs, effective October 14.
Meanwhile, HDFC Mutual Fund has chosen a middle ground by restricting investments up to Rs 1 lakh per PAN per day, instead of an outright suspension.
Who’s still accepting investments
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While a few fund houses have paused or restricted inflows, several others continue to accept investments in their Silver ETF FoFs.
Among the active funds that remain open to new investments are Aditya Birla Sun Life Silver ETF FoF, Axis Silver FoF, DSP Silver ETF FoF, Nippon India Silver ETF FoF , Zerodha Silver ETF FoF.
These AMCs have not issued any notice of suspension or restriction as of October 15, 2025, suggesting that they continue to operate normally for both lumpsum and SIP transactions.
Industry experts point to tightness in physical silver supply and limited liquidity in underlying ETFs as the primary reason for these suspensions. Silver ETF FoFs invest primarily in silver ETFs, which in turn must hold physical silver to back their units. When demand for silver ETFs rises sharply and supply is constrained, it becomes difficult for the market makers to create new ETF units efficiently.
This imbalance can lead to premium pricing where ETF units trade at a price higher than the actual value of the physical silver they represent. By temporarily halting fresh investments, fund houses aim to protect investors from entering at inflated prices.
For investors already holding silver FoF units, there’s no cause for concern. Existing SIPs in most funds will continue uninterrupted unless specifically stopped by the AMC. Those looking to start new investments can still consider AMCs that remain open but should remain mindful of the volatility in silver prices and temporary supply constraints.
Once market conditions stabilise and the gap between silver demand and ETF supply narrows, fund houses are expected to reopen these investment windows.