Kotak Mutual Fund has announced a temporary suspension of lumpsum and switch-in subscriptions in its Kotak Silver ETF Fund of Fund (FoF), effective October 10, following an unusual surge in domestic silver prices that have drifted sharply above global levels. The move, the fund house said, is intended to protect investors from paying inflated premiums caused by an acute shortage in India’s physical silver market. Advertisement

Kotak Mutual Fund stated, “Lumpsum and switch-in investments in Kotak Silver ETF Fund of Fund will be temporarily suspended. Subscriptions will resume once the premium normalizes to acceptable levels. Existing SIPs and STPs will continue as usual.”

According to Nilesh Shah, Managing Director of Kotak Mahindra Asset Management Company (AMC), the decision was driven

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