HDFC Mutual Fund has imposed temporary restrictions on new investments in its HDFC Silver ETF Fund of Fund (FoF) following sharp fluctuations in silver prices. The fund house said the move aims to safeguard investors’ interests amid heightened volatility in the precious metals market.
According to an addendum on Wednesday, HDFC Mutual Fund will now accept new lump-sum purchases, switch-ins, and systematic registrations — including Systematic Investment Plans (SIPs) and Systematic Transfer Plans (STPs) — only up to Rs 1 lakh per PAN per day. The restriction took effect after the cut-off time of 3:00 p.m. on 14 October 2025 and will remain in force until further notice.
The decision follows similar actions by other leading mutual funds. Tuesday, ICICI Prudential Mutual Fund announced a halt on fresh allocations to its silver ETF FoF amid soaring domestic premiums on silver. Earlier, Kotak, UTI, SBI, Tata, and Groww Mutual Funds had also restricted new investments, citing widening price gaps between domestic and international silver markets and supply-side pressures.
Industry experts have flagged that domestic silver prices have been trading at a significant premium to global benchmarks, leading to valuation challenges and distortions in ETF pricing.
HDFC Mutual Fund clarified that ongoing SIPs, STPs, and other systematic transactions will continue as usual, while redemption and switch-out requests will remain unaffected. All other terms and conditions of the HDFC Silver ETF Fund of Fund will also stay unchanged.
The move comes at a time when silver markets globally have witnessed intense price swings, prompting asset managers to reassess their exposure and strengthen risk controls in precious metal-based schemes.