Description
Groww Asset Management temporarily suspends fresh subscriptions in Groww Silver ETF FOF due to domestic silver trading at premium to international prices caused by physical silver shortage.
Summary
Groww Asset Management has temporarily suspended all fresh subscriptions and switch-in transactions for Groww Silver ETF FOF effective October 13, 2025 at 3:00 PM. The suspension is due to domestic silver trading at a premium to international prices caused by a shortage of physical silver in the domestic market. The scheme invests in units of Groww Silver ETF which tracks domestic silver prices, making the premium directly impact scheme valuation. Redemptions and switch-outs will continue normally.
Key Points
- All purchase and switch-in transactions time-stamped on or before 3:00 PM on October 13, 2025 will be processed at applicable NAV
- Transactions received after 3:00 PM on October 13, 2025 will not be accepted
- Existing and new scheme facilities like SIP, SWP, and STP are not affected
- Redemptions and switch-outs will continue as per normal terms in the SID
- Suspension is temporary and will remain until further notice
- Domestic silver is trading at a premium to international prices due to physical silver shortage
- Groww Silver ETF FOF invests in Groww Silver ETF which replicates domestic silver prices
Regulatory Changes
No regulatory changes. This is an operational measure taken by the fund house in response to market conditions.
Compliance Requirements
- Notice cum addendum forms integral part of Scheme Information Document (SID) and Key Information Memorandum (KIM)
- All other terms and conditions in SID and KIM remain unchanged
- Investors encouraged to register/update email and mobile number for paperless communications under Go Green Initiative
Important Dates
- October 13, 2025, 3:00 PM: Last date/time for accepting purchase and switch-in transactions
- October 13, 2025: Effective date of suspension notice
- Until further notice: Duration of temporary suspension
Impact Assessment
Market Impact: High - Reflects significant market dislocation with domestic silver trading at premium to international prices due to physical supply shortage. This creates valuation concerns for schemes tracking domestic silver prices.
Investor Impact: High - New investors and existing investors looking to add units cannot subscribe until suspension is lifted. However, existing investors can continue redemptions and systematic transactions (SIP/SWP/STP) remain operational.
Operational Impact: The suspension protects existing unitholders from dilution that could occur if new subscriptions were accepted at artificially inflated domestic silver prices. Fund house prioritizing fair valuation over asset gathering.
Impact Justification
Complete suspension of new subscriptions in a commodity ETF FOF affecting investor access; driven by significant market conditions with domestic silver premium due to physical shortage