India’s UTI Asset Management Suspends New Investments in Silver ETF

UTI Asset Management Company (UTIA.NS) announced on Saturday that it has temporarily suspended new lump-sum and switch-in investments in its UTI Silver ETF Fund of Fund, effective October 13, 2025.

The asset manager said the move was prompted by current market conditions and a shortage of physical silver in the domestic market, where the metal is trading at a premium to international prices.

“The premium on domestic silver prices directly affects the valuation of the scheme,” UTI said in its statement.

UTI became the second fund house this week to pause new investments in silver-based funds. Earlier, Kotak Mahindra Asset Management had also suspended fresh inflows into its Silver ETF Fund of Fund, citing similar market factors.

Kotak said it would provide further updates in the coming weeks once supply conditions improve after Diwali.

Spot silver hit a record high of $51.22 per ounce on Thursday, crossing the $51 mark for the first time.

In India — the world’s largest consumer of silver — strong festive-season investment demand and tight supplies pushed the premium on domestic silver to as much as 10% above official prices on Thursday, according to bullion traders.