Kotak Mutual Fund temporarily suspends lump-sum subscriptions to Kotak Silver ETF Fund of Fund

Kotak Mutual Fund has announced a temporary suspension of lump-sum and switch-in subscriptions to its Kotak Silver ETF Fund of Fund, effective October 10, 2025.

The move comes amid a 10-12% premium in domestic spot silver prices over international import parity levels, driven by speculation and short covering. This aims to protect investors from inflated costs in a volatile commodity market.

While lump-sum investments are paused, Systematic Investment Plans (SIPs), redemptions, and the underlying listed Silver ETF remain unaffected, ensuring continuity for existing investors. Subscriptions will resume once premiums align with import parity prices.

Silver prices surged by ₹6,000 to a fresh record of ₹1,63,000 per kg in the national capital on Thursday as the metal touched USD 50 per ounce in overseas markets for the first time. Analysts cited strong industrial demand, geopolitical and economic uncertainties, and growing expectations of US Federal Reserve interest rate cuts as key drivers.

Keeping in mind the high spot premium for Silver over the import parity price, Kotak MF is suspending lump sum subscription in Kotak Silver ETF Fund of Fund. ( Refer to the attached addendum for details )

SIPs and redemptions will continue as before in the regular course of… https://t.co/gbiNLWI3my pic.twitter.com/wjeQNwWHOa

— Nilesh Shah (@NileshShah68) October 9, 2025

This steep surge marks the second in a week, following a ₹7,400 rise to ₹1,57,400 per kg on October 6. The All India Sarafa Association reported silver closing at ₹1,57,000 per kg on Wednesday.

In the local bullion market, gold of 99.9% and 99.5% purity remained unchanged at all-time highs of ₹1,26,600 and ₹1,26,000 per 10 grams, respectively. Globally, spot gold traded marginally lower at USD 4,039.26 per ounce.