Avoid lump-sum buy in silver ETFs, say experts

WITHTHE PREMIUM on silver exchange traded funds (ETFs) via the fund of funds (FoF) route having shot up to as muchas 12% over spot prices, fund managers are pulling the plug on these investments.

- SAIKAT NEOGI

After four asset management companies — Kotak, SBI, UTI and Tata — halted investments via FoFs, two others, ICICI and Axis, followed suit on Tuesday.

The fund houses have decided to halt fresh investments, including lump-sum, switch-in transactions and fresh registration systematic investment plans/systematic transfer plans into their silver FTF FoFs.

On Tuesday, prices of silver in the local market touched an all-time high of 1.77 lakh per kilogram. They had hit $52.37 per ounce in the international market on Monday. Prices in the home market have been on a tear since January having soared a staggering 105%.