FUND HOUSES SUSPEND FRESH INVESTMENTS IN SILVER ETFs

Suspension of these funds is for new additions meant to ensure fair treatment of investors

- BENN KOCHUVEEDAN @Mumbai

WITH the Tata AMC suspending/freezing fresh investments in exchange traded silver f unds on Tuesday, the number of fund houses taking such protective/corrective action has reached five.

Why fund houses doing so

The simple and quick answer is the acute shortage of the white metal, which has led to prices soaring and the resultant rising premium that has climbed around 12% over the physical metal. Apart from Tata MF, other fund houses that have temporarily suspended new investments into their silver ETF fund-of-funds are Axis Mutual Fund, Kotak AMC, UTI AMC, and SBI Mutual Fund.

As per Axis MF, total silver ETF holdings in the country is roughly 1.13 billion ounce, which is worth over $40 billion by mid-2025. In a statement earlier in the day, Tata MF said it is temporarily suspending purchases, switch-ins, fresh SIPS, and fresh systematic transfer Plans or STPs into the scheme in the Tata Silver ETF fund-offund, effective October 14.