Description

UTI Mutual Fund suspends fresh subscriptions and switch-ins to UTI Silver ETF Fund of Fund effective October 13, 2025 due to premium pricing in domestic silver market. Redemptions continue to be permitted.

Summary

UTI Mutual Fund has announced a temporary suspension of all fresh and additional lump sum and switch-in transactions in the UTI Silver ETF Fund of Fund, effective October 13, 2025. This decision is driven by prevailing market conditions where domestic silver is trading at a premium relative to international prices due to a shortage of physical silver in the domestic market. The premium in domestic silver prices directly impacts the scheme’s valuation. Redemptions and switch-outs will continue to be permitted, and existing systematic plans remain operational with certain restrictions on new registrations.

Key Points

  • All fresh and additional lump sum purchases suspended effective October 13, 2025
  • Switch-in transactions to the scheme suspended from October 13, 2025
  • Suspension caused by premium pricing in domestic silver market relative to international prices
  • Physical silver shortage in domestic market is the underlying cause
  • Transactions timestamped on or before 3:00 PM on October 10, 2025 will be processed at applicable NAV
  • All existing SIP, STP, SWP, and Flexi STP registrations remain operational
  • New systematic plan registrations subject to ₹5 lakh daily transaction limit per registration
  • Redemptions and switch-outs continue to be permitted without restriction
  • Suspension is temporary and will continue until further notice

Regulatory Changes

No regulatory changes. This is an operational decision by UTI Mutual Fund to manage the scheme in response to market conditions.

Compliance Requirements

  • Distributors and investors must be informed of the suspension of fresh subscriptions and switch-ins
  • Purchase or switch-in transactions timestamped after 3:00 PM on October 10, 2025 will not be accepted from October 13, 2025 onwards
  • New systematic plan registrations must adhere to the ₹5 lakh daily transaction limit per registration
  • All other terms and conditions of the Scheme Information Document (SID) and Key Information Memorandum (KIM) remain unchanged
  • This addendum forms an integral part of the SID and KIM

Important Dates

  • October 10, 2025, 3:00 PM: Last timestamp for accepted purchase/switch-in transactions to be processed at applicable NAV
  • October 13, 2025: Effective date of suspension for fresh and additional lump sum and switch-in transactions
  • Until further notice: Duration of the temporary suspension

Impact Assessment

Market Impact: The suspension affects new investments in UTI Silver ETF Fund of Fund, a niche product tracking domestic silver prices. The decision reflects broader market stress in the physical silver market where domestic prices are at a premium to international prices due to supply constraints.

Investor Impact: Existing investors can continue to redeem or switch out of the scheme without restriction. Existing systematic plans (SIP/STP/SWP/Flexi STP) registered before the effective date continue unaffected. New investors are blocked from making lump sum investments or switch-ins, though they can still register systematic plans subject to a ₹5 lakh daily limit per registration.

Operational Impact: This is a risk management measure to prevent the scheme from accepting new investments during a period when the underlying asset (silver) is experiencing abnormal pricing conditions. The fund house is protecting existing investors from potential valuation issues arising from the premium in domestic silver prices. The temporary nature suggests the fund expects market conditions to normalize.

Impact Justification

Affects investors of a specific fund product but limited to one scheme. Existing investments and redemptions unaffected. Temporary measure due to market conditions.