HDFC Mutual Fund has resumed full subscription access to its HDFC Silver ETF Fund of Fund (FoF). Investors can now make lump-sum investments, switch-ins, and new registrations for SIPs (Systematic Investment Plans) and STPs (Systematic Transfer Plans) without any restriction.
Reason for Temporary Cap
The resumption follows a short-lived restriction on fresh investments to ₹1 lakh per PAN per day, introduced after 3:00 pm on October 14, 2025. This cap was imposed due to elevated domestic silver prices, which were trading at a premium relative to global benchmarks amid supply constraints.
Industry Context
HDFC Mutual Fund was among several AMCs adjusting inflows into silver-based passive schemes:
- Earlier actions: ICICI Prudential, Tata, Kotak, SBI, and UTI Mutual Fund had suspended fresh subscriptions or switch-ins.
- Recent restrictions: Aditya Birla Sun Life, Axis, and Groww Mutual Fund temporarily limited lump-sum inflows.
Unlike other AMCs that opted for complete pauses, HDFC implemented a quantitative cap, which has now been lifted, allowing normal inflows to resume.
What Remains Unchanged
- Existing SIPs and STPs were unaffected by the earlier cap and continue as scheduled.
- Redemptions from the scheme remain unaffected.
The AMC emphasized that both the temporary restriction and its subsequent reopening were aimed at protecting investor interests under prevailing market conditions.
Summary:
HDFC Mutual Fund has reopened its Silver ETF FoF for unrestricted subscriptions after a brief cap due to high domestic silver prices. While the restriction was temporary, SIPs, STPs, and redemptions remained unaffected, reflecting the AMC’s approach to balancing investor access with market prudence.
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