Kotak Mahindra Asset Management Company (KMAMC) has temporarily halt all new and additional lump-sum or switch-in investments in its Kotak Silver ETF Fund of Fund . The fund house reasoned that the step was taken to prevent fomo buying.

Why did Kotak decide to pause new investment in silver ETF?

The company said that the domestic silver prices were trading at an abnormally high premium, 10-12% above import parity levels. And Kotak, instead of feeding into that inflated market, decided to protect investors from walking straight into overvaluation.

In its official statement, the asset management company noted that this price anomaly stemmed from a shortage of physical silver in the domestic market. This was seen as a temporary mismatch, too many buyers chasing too little supply. The m

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