- Groww Mutual Fund has suspended new subscriptions to its Silver ETF Fund of Fund due to silver shortage
- The suspension applies to purchase and switch-in transactions after 3:00 p.m. on Oct. 13, 2025
- However, existing investors can continue SIP, SWP, STP, and redemptions without disruption
Groww Mutual Fund has temporarily suspended new subscriptions to its Groww Silver ETF Fund of Fund (FoF), citing a shortage of physical silver in the domestic market. The fund house said that silver is currently trading at a premium to international prices, making fresh investments less viable.
The suspension applies to all purchase and switch-in transactions time-stamped after 3:00 p.m. on October 13, 2025. Transactions submitted before the cut-off will be processed at the applicable net asset value.
Despite the suspension, existing investors will not face any disruption, as facilities like SIP, SWP, and STP will continue as usual. The fund also clarified that redemptions and switch-outs remain permitted under the existing scheme rules.
Groww described the move as a temporary measure and assured that it will stay in effect until further notice.
The Groww Silver ETF FOF invests primarily in units of the Groww Silver ETF, which tracks domestic silver prices. Since the fund's valuation directly reflects the local silver market, the current premium in Indian prices has prompted the temporary halt.
Over the past week, three major mutual fund houses of India including SBI Mutual Fund, Kotak Mutual Fund, and UTI Mutual Fund, also temporarily halted fresh lumpsum investments in their respective Silver ETF Fund of Funds.
In separate notices issued over the past week, the fund houses said the move is aimed at protecting investor interests, citing that shortages of physical silver have affected the creation of new ETF units and caused domestic silver prices to trade at a premium to international levels.
Two market experts NDTV Profit spoke to said the suspensions are precautionary measures in response to temporary supply constraints. Both indicated that the restrictions are likely to be lifted once the availability of physical silver improves and domestic prices align more closely with international levels.
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