Why have India’s biggest mutual funds stopped accepting new silver investments—just as global prices hit all-time highs? Kotak, SBI, and UTI Mutual Funds have frozen fresh lumpsum inflows into their Silver ETF Fund of Funds (FoFs), citing inflated domestic prices and fears of short-term investor losses.

1. What are Silver ETFs and Silver ETF Fund of Funds (FoFs)? Advertisement

A Silver ETF tracks the price of physical silver and trades on stock exchanges. It offers exposure to silver without owning the metal. A Silver ETF FoF is a mutual fund that invests in a Silver ETF, ideal for investors without demat accounts or those using SIPs.

2. Why did fund houses freeze new investments in these silver FoFs?

Because domestic silver prices have decoupled from global benchmarks. A temporary s

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