HDFC Mutual Fund resumes subscriptions in Silver ETF FoF after temporary cap

HDFC Mutual Fund has restored full subscription access to its HDFC Silver ETF Fund of Fund (FoF). The scheme is now open for lump-sum investments, switch-ins, and new registrations of SIPs (Systematic Investment Plans) and STPs (Systematic Transfer Plans).

What changed

The resumption comes after the AMC had temporarily restricted fresh investments to ₹1 lakh per PAN per day, a limit that was introduced post 3:00 pm on October 14.

The cap was put in place in response to elevated domestic silver prices, which were trading at a premium to global benchmarks due to supply constraints.

Broader industry context

HDFC Mutual Fund is among several AMCs that adjusted inflows into silver-based passive schemes over the past few days:

ICICI Prudential, Tata, Kotak, SBI, and UTI Mutual Fund had earlier suspended fresh subscriptions or switch-ins into their Silver ETF FoFs.

More recently, Aditya Birla Sun Life, Axis, and Groww Mutual Fund also put temporary restrictions on lump-sum inflows.

While most fund houses opted for complete pauses on fresh investments, HDFC implemented a quantitative cap instead of a full suspension, and has now rolled back that restriction.

What continues unchanged

• Existing SIPs and STPs were not affected by the earlier cap and continue as usual.
• Redemptions from the scheme remain unaffected.

The AMC stated that both the temporary restriction and the reopening were undertaken to protect investor interest under prevailing market conditions.