SBI Mutual Fund Freezes Fresh Lump-Sum Investments in Silver ETF FoF as Silver Prices Hit Record High
SBI Mutual Fund has decided to temporarily suspend lump-sum investments in its Silver ETF (FoF) from October 13, 2025. This decision was made due to increased demand for silver and a shortage of physical supply. Investments through SIP, STP, redemption, and switch-out will continue.
SBI Mutual Fund has declared suspension of fresh lump-sum investments in its SBI Silver ETF Fund of Funds (FoF) from October 13, 2025, considering the sudden rise in silver demand and short supply in physical form. Lump-sum investment refers to investing big money at one go.
In an official notice, the fund house attributed the recent rise in silver prices to global macroeconomic factors and increasing investor interest in commodities.
Limited physical silver availability has curbed new ETF units creation at the Indicative Net Asset Value (iNAV), necessitating investor interest protection measures. SBI Silver ETF FOF is a fund-of-funds open-ended scheme that invests in the SBI Silver ETF, which follows local silver prices.
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SBI Mutual Fund stated that the premium in domestic silver prices directly impacts the scheme's valuation. This suspension will apply to all new lump-sum subscriptions, including additional purchases and switch-ins. However, existing investments through Systematic Investment Plans (SIPs), Systematic Transfer Plans (STPs), redemptions, and switch-outs will continue as per the existing scheme information document.
SBI Mutual Fund clarified that this suspension is temporary and will remain in effect until further notice. All other terms and conditions of the scheme remain unchanged. Investors are advised to take note of this update and carefully read all scheme-related documents before making any investment decisions.
Silver prices are breaking records. On Friday evening, the silver rate on the India Bullion and Jewelers Association closed at ₹164,500 per kg. On January 1st, the same rate was ₹85,900.
