After Kotak and UTI, SBI Mutual Fund halts silver ETF FoF subscriptions

Following Kotak Mutual Fund and UTI Mutual Fund, SBI Mutual Fund has now suspended fresh subscriptions to its Silver ETF Fund of Fund (FoF), effective October 13.

The fund house informed unitholders through a notice cum addendum, stating that in view of the current market scenario and to safeguard investors’ interests, it has decided to temporarily halt all fresh subscriptions, including lump-sum investments, additional purchases, and switch-ins, in the SBI Silver ETF FoF.

Also Read | Silver ETF: Kotak MF temporarily halts lumpsum and switch-in subscriptions in FoF

All existing and new Systematic Investment Plans (SIPs) and Systematic Transfer Plans (STPs) offered by the scheme will remain operational. Investors should note that during the suspension period, redemptions and switch-outs will continue to be permitted as per the terms outlined in the Scheme Information Document (SID).

The notice cum addendum stated:

“Investors are requested to note that in recent weeks, silver has witnessed a sharp surge in demand, driven by global macroeconomic factors and increased investor interest in commodities. However, the current limited availability of physical silver has constrained the creation of new units by ETFs at the indicative NAV (iNAV).”The suspension is temporary and will continue only until further notice.SBI Silver ETF Fund of Fund is an open-ended fund of fund that invests in the SBI Silver ETF. The SBI Silver ETF is an open-ended exchange-traded fund that tracks silver prices. Its valuation reflects domestic silver prices, meaning any premium in domestic silver directly impacts the scheme’s NAV.

Also Read | UTI Mutual Fund temporary suspends subscription of units in UTI Silver ETF Fund of Fund

All other terms and conditions of the Scheme Information Document (SID) and Key Information Memorandum (KIM) remain unchanged. This addendum forms an integral part of the SID and KIM, as amended from time to time.

On Thursday, Kotak Mutual Fund announced the suspension of subscriptions to its Silver ETF FoF, followed by UTI Mutual Fund and SBI Mutual Fund on Saturday, which also halted fresh subscriptions to their respective silver ETF FoFs.