UTI Asset Management halts new investments in silver ETF, follows Kotak Mahindra AMC’s suspension

UTI Asset Management Company has temporarily suspended fresh lump-sum and switch-in investments into the UTI Silver ETF Fund of Fund, effective October 13, 2025, the company said in a statement on Saturday.

The asset manager said this was due to prevailing market conditions and a shortage of physical silver in the domestic market, as the metal trades at a premium relative to international prices.

“Therefore, the premium in domestic silver prices directly impacts the valuation of the scheme.”

UTI is the second fund manager to curb new investments into silver-based funds this week. On Thursday, Kotak Mahindra Asset Management Company also temporarily suspended new investments into a Silver ETF Fund of Fund.

Kotak said it would lift the restrictions within the next couple of weeks as supply improves after the Hindu festival of Diwali.

Spot silver hit a record high of $51.22 per ounce on Thursday, surpassing the $51 per ounce level for the first time.

In India, the world’s biggest silver consumer, silver’s premium over official domestic prices jumped as much as 10% on Thursday because of strong investment demand ahead of a key festival and limited supplies, bullion dealers said.

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