The scheme invests in the SBI Silver ETF, which tracks domestic silver prices. The fund house said premiums in domestic prices have distorted valuations, making it difficult to create new ETF units at indicative NAV.
The suspension covers all new lump sum purchases and switch-ins. Existing SIPs, STPs, redemptions and switch-outs will continue without disruption. The fund manager has clarified that the restriction is temporary and will stay in place until further notice.
No other terms of the scheme have been altered.
SBI’s decision follows similar actions by Kotak Mutual Fund and UTI Mutual Fund, both of which halted inflows into their silver ETF Fund of Fund.
The string of suspensions indicates growing caution in the silver fund category, even as prices hit all-time highs.
Silver has surged past $50 an ounce globally, with Indian prices touching ₹1.63 lakh per kg. The rally has fuelled a spike in investor interest, causing several silver ETFs to trade at notable premiums to their underlying assets.
On the National Stock Exchange (NSE), top-traded silver ETFs such as those from SBI Mutual Fund, HDFC MF, and Axis MF are up between 9% and 13%, according to exchange data. Their NAVs, however, suggest valuations should be lower — implying investors are paying between 2% and 10% more than the actual underlying silver value.
