SBI Mutual Fund and ICICI Prudential Mutual Fund have reopened subscriptions in their respective Silver ETF Fund of Fund (FoF) schemes following a brief suspension prompted by inflated domestic silver prices that had outpaced global benchmarks.
Subscriptions Resume After Temporary Pause
SBI Mutual Fund restarted accepting investments in its Silver ETF FoF from October 27, 2025, while ICICI Prudential Mutual Fund followed suit on October 28, 2025. The resumption covers lump-sum investments, switches, and new Systematic Investment Plans (SIPs) and Systematic Transfer Plans (STPs).
Both fund houses had temporarily suspended inflows on October 15, 2025, after domestic silver prices surged sharply, leading to a premium over international rates. The spike was attributed to supply shortages in the local bullion market, which caused valuation concerns for silver-linked mutual fund schemes.
Reason for Suspension
The temporary halt was implemented to protect investor interests amid market distortion. Fund houses noted that physical silver shortages led to a supply-demand imbalance, inflating the Net Asset Value (NAV) of silver ETFs. However, ongoing SIP and STP transactions registered before October 14, 2025, continued to be processed during the suspension period, ensuring minimal disruption for existing investors.
Industry-Wide Response
ICICI Prudential and SBI Mutual Funds were among five fund houses that paused fresh inflows into their Silver ETF FoFs, along with Kotak Mutual Fund, TATA Mutual Fund, and UTI Mutual Fund.
All of these have now resumed normal operations, following the stabilization of silver prices. Additionally, HDFC Mutual Fund, which had earlier imposed partial restrictions, has also lifted all limits on new investments in its Silver ETF FoF.
About the Silver ETF Fund of Fund
The SBI Silver ETF FoF and ICICI Prudential Silver ETF FoF are fund of fund schemes that primarily invest in their respective Silver ETFs, designed to mirror domestic silver price movements.
These funds value their holdings based on the closing prices of ETF units traded on the exchange, making them sensitive to market volatility and pricing discrepancies between domestic and international markets.
Conclusion
The reopening of subscriptions by major fund houses like SBI and ICICI Prudential marks a return to normalcy in the silver ETF segment after recent price turbulence. With silver premiums narrowing and market conditions stabilizing, investors can once again gain exposure to the precious metals market through these structured investment avenues.
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