After Kotak, UTI MF halts Silver ETF FoF subscriptions citing market scenario

UTI Mutual Fund has temporarily suspended fresh subscriptions in its Silver ETF Fund of Fund (FoF) from October 13, 2025, becoming the second asset manager in a week to halt inflows into silver-linked mutual fund schemes.

In a notice-cum-addendum issued Friday, UTI Mutual Fund stated that all new lump sum and switch-in transactions into the UTI Silver ETF Fund of Fund will be suspended from October 13, “in light of the current market scenario.”

Only transactions timestamped on or before 3:00 PM on October 10 will be accepted and processed at the applicable NAV, the fund house clarified.

This follows a similar move by Kotak Mutual Fund, which also halted fresh investments in its silver ETF FoF earlier this week, raising concerns about market volatility or potential regulatory shifts in the silver asset class.

While lump sum and switch-in investments are suspended, Systematic Investment Plans (SIPs) and other automated investment routes such as Systematic Transfer Plans (STPs), Systematic Withdrawal Plans (SWPs), and Flexi STPs will remain operational. However, all new registrations for such plans will be capped at ₹5 lakh per day per registration starting October 13.

The limit does not apply to SIPs, STPs, SWPs, or Flexi STPs already registered prior to the suspension date.

Importantly, redemptions and switch-outs from the scheme will continue without restriction, as per the terms in the Scheme Information Document (SID).

The fund house emphasized that no other terms or conditions of the scheme have been changed. The addendum issued now forms an integral part of the existing SID and Key Information Memorandum (KIM).

The twin suspensions by UTI and Kotak suggest growing caution among fund managers toward the silver ETF space, although both firms have stopped short of providing specific reasons beyond “market conditions.”