UTI Asset Management Company has announced a temporary suspension of new lump-sum and switch-in investments in its UTI Silver ETF Fund of Fund, effective from October 13, 2025. The decision is attributed to prevailing market conditions and a shortage of physical silver in the domestic market, as the metal is currently trading at a premium compared to international prices.
The company indicated that this premium on domestic silver prices directly affects the valuation of the scheme.
In recent developments, UTI is not the only asset manager to restrict investments in silver-based funds. Earlier this week, Kotak Mahindra Asset Management Company also halted new investments in its Silver ETF Fund of Fund, citing similar concerns. Kotak has indicated that it plans to lift these restrictions within the next few weeks, anticipating an improvement in supply following the Hindu festival of Diwali.
Spot silver prices reached a record high of $51.22 per ounce on Thursday, marking a significant rise past the $51 per ounce threshold for the first time. In India, which is the world’s largest consumer of silver, the premium on silver over official domestic prices surged by as much as 10% on Thursday, driven by strong investment demand ahead of a major festival, coupled with limited supplies, according to bullion dealers.
Published on October 12, 2025.
