Kotak Mutual Fund Suspends Lump Sum Investments in Silver ETF

Kotak Mutual Fund has announced a temporary suspension of lump sum and switch-in subscriptions for its Silver ETF Fund of Fund. This action, effective October 10, 2025, addresses the unprecedented surge in silver prices recently. The decision aims to safeguard customer interests amid the significant premium of domestic over international silver prices.

The fund highlights that the ongoing scarcity in India's physical silver market has led to this decision. Despite the suspension, the fund maintains a positive outlook on silver as an investment and encourages continued investments via Systematic Investment Plans (SIP) and Systematic Transfer Plans (STP), which remain unaffected.

With a modest selling premium of around 3%, Kotak Mahindra Mutual Fund emphasizes that this move shouldn't be viewed negatively on silver as a commodity. The aim is solely to shield investors from the risk of entering at inflated domestic premiums, ensuring their financial protection.

(With inputs from agencies.)