Curbs on silver ETF and FoF investments lifted as supply eases and premiums normalise. Re-discover this dynamic asset class with reopened subscriptions from major fund houses.
Mutual fund houses have reopened investments in silver exchange-traded fund (ETF) fund-of-fund (FoF) schemes after weeks of restrictions, as supply constraints ease and market premiums return to normal levels. The move restores investor access to one of 2025’s most dynamic asset classes.
Tata Mutual Fund was among the first to resume lump-sum investments in its silver FoF from October 24, citing “normalisation of market conditions.” Several other fund houses, including Aditya Birla Sun Life, HDFC, Kotak, and Axis, have also reopened their silver ETF FoFs for new inflows. SBI Mutual Fund remains the only major player yet to lift curbs on lump-sum and switch-in investments.
The temporary suspension was introduced earlier this month after silver ETFs traded at 5–10% premiums for several sessions as global silver prices surged past $50 an ounce amid a supply squeeze. Fund houses halted new inflows to prevent overvaluation.
With physical supply stabilising and prices cooling, premiums have now moderated. Analysts say investor demand has also levelled off following a global correction, and silver ETF prices have dropped more than 20% from their mid-October highs, according to Business Today.
Silver’s long-term outlook remains strong due to its dual role as both an investment asset and a key industrial material. Rising demand from solar energy, electric vehicles, and advanced electronics continues to underpin its structural strength. Despite short-term volatility, Indian silver ETFs have drawn record participation this year, reflecting sustained investor confidence in the metal’s growth potential.
Silver-backed ETFs have emerged as a popular route for investors seeking exposure to the metal without holding physical bullion. Their ease of access and precise price tracking have attracted both institutional and retail investors. In 2025, robust inflows pushed global ETF holdings to record levels, with Indian silver ETFs outperforming and broadening their investor base. Brief pauses in new subscriptions highlighted the strength of demand and the challenges of managing premiums during rapid price spikes.
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