UTI Asset Management Company has temporarily suspended new lump sum and switch-in investments in its UTI Silver ETF Fund of Fund from October 13, 2025, citing prevailing market conditions and shortage of physical silver in India. | Photo credit: istock.com
UTI Asset Management Company has temporarily suspended new lump sum and switch-in investments in the UTI Silver ETF Fund of Funds, effective October 13, 2025, the company said in a statement on Saturday.
The asset manager said this was due to prevailing market conditions and a shortage of physical silver in the domestic market as the metal trades at a premium to international prices.
“Therefore, the premium in domestic silver prices has a direct impact on the valuation of the scheme.”
Kotak AMC had earlier stopped inflows of Silver ETFs citing the same issue
UTI is the second fund manager to restrict new investments in silver-based funds this week. On Thursday, Kotak Mahindra Asset Management Company also temporarily suspended new investments in a Silver ETF Fund of Funds.
Kotak said it would lift restrictions within the coming weeks as supply improves after the Hindu festival of Diwali.
Spot silver hit a record high of $51.22 per ounce on Thursday, surpassing the $51 per ounce level for the first time.
In India, the world’s largest silver consumer, the silver premium to official domestic prices rose as much as 10% on Thursday on strong investment demand ahead of a major festival and limited supply, bullion dealers said.
Published on October 12, 2025
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