In a move reflecting heightened volatility and record-high prices in the silver market, Kotak Mutual Fund, SBI Mutual Fund, and UTI Mutual Fund have temporarily suspended fresh lump sum investments in their Silver Exchange Traded Fund (ETF).The decision comes as silver prices continue to surge globally, prompting fund houses to exercise caution in managing inflows and portfolio allocations. The suspension applies only to lump sum investments — investors can continue to invest via Systematic Investment Plans (SIPs) or through existing holdings.

According to market experts, such temporary halts are a risk management measure rather than a bearish signal on silver. It allows asset managers to balance fund flows, rebalance holdings, and maintain alignment with regulatory and liquidity norms. Mutual fund houses are seeking to ensure portfolio stability and avoid excessive short-term inflows that could distort pricing or liquidity management within their FoFs.

Silver ETFs in 2025 are seeing unprecedented inflows, tripling gold ETF investments as domestic prices surge 53%. Record festive buying, global supply constraints, and strong returns have fueled demand, prompting temporary subscription halts and highlighting silver’s growing role in long-term portfolio diversification.

Passive ETFs have also seen growth, with gold ETFs maintaining momentum and other ETFs rising from about Rs 1,500 crore last month to more than Rs 8000 crore now. Silver ETFs are catching attention too, as some investors are building allocations while others are chasing returns.