SBI Mutual Fund, the country’s largest fund house, and UTI Asset Management Company have suspended fresh investments into their silver fund of funds (FoF) which invest in their respective silver ETFs.

Earlier, Kotak MF had suspended accepting fresh investment in its silver FoF due to the prevailing premium in silver ETFs arising from shortage of physical silver in the spot market.

SBI MF, in a statement, said that in recent weeks, silver has witnessed a sharp surge in demand, driven by global macroeconomic factors and increased investor interest in commodities. However, the current limited availability of physical silver has put constraint on the creation of new units by the ETFs at indicative NAV (iNAV).

SBI Silver ETF Fund of Fund, an open-ended fund of fund scheme, invests in SBI

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