Important Clarification by Kotak Mutual Fund: This temporary restriction on lumpsum/switch-in investments should NOT be interpreted as a negative view on silver as a commodity.
FinTech BizNews Service
Mumbai, October 9, 2025: Kotak Mutual Fund Has Temporarily Suspended Lumpsum/Switch-in Subscriptions in Kotak Silver ETF Fund of Fund.
Effective Date is 10th October 2025
Market Context
As per a press release released by the Kotak Mutual Fund today late evening, global silver markets have experienced a sustained demand-supply deficit over recent years, driving prices upward. In light of this trend, we have been advising investors to consider allocating funds to silver as part of a diversified portfolio.
Current Domestic Market Situation
However, domestic silver is currently trading at a significant premium compared to international
prices due to acute scarcity in India's physical silver market.
Key observations:
The premium has increased from approximately 0.5% in early September 2025 to 5.7% as of
9th October 2025
On 9th October, the intraday premium peaked at 12% before closing at 5.7%
Current market conditions show a buying premium of approximately 10% and a selling
premium of approximately 3%
Source: MCX Spot Price, LBMA
Supply Outlook
We anticipate that the shortage in domestic silver supply may persist through the end of October
2025.
Action Being Taken
In the best interest of our investors, we are implementing the following measures effective 10th
October 2025:
✓ Lumpsum/Switch-in investments in Kotak Silver ETF Fund of Fund will be temporarily suspended
We will resume lumpsum/switch-in subscriptions once the premium normalizes to acceptable
levels
✓ SIP (Systematic Investment Plan) / STP (Systematic Transfer Plan) investments will continue
uninterrupted
Existing SIPs/STPs in Kotak Silver ETF Fund of Fund remain active
Important Clarification
This temporary restriction on lumpsum/switch-in investments should NOT be interpreted as a
negative view on silver as a commodity.
The selling premium remains modest at approximately 3%, and we continue to maintain a constructive
outlook on silver from a long-term investment perspective. This measure is purely aimed at protecting
investors from entering at inflated domestic premiums.
