Description

Axis AMC temporarily suspends lump-sum and switch-in subscriptions in Axis Silver Fund of Fund effective 3:00 PM on October 13, 2025 due to pricing distortions in domestic silver ETF market.

Summary

Axis Asset Management Company Limited has temporarily suspended acceptance of lump-sum and switch-in subscriptions in Axis Silver Fund of Fund effective after 3:00 PM on October 13, 2025. The suspension is due to pricing distortions in domestic silver ETF markets caused by heightened demand and supply constraints. Since the Fund of Fund invests in Axis Silver ETF units, any premium in the underlying ETF directly impacts the fund’s valuation, potentially exposing new investors to short-term pricing distortions.

Key Points

  • Temporary suspension of lump-sum and switch-in subscriptions effective post 3:00 PM on October 13, 2025
  • Suspension applies only to new applications (lump-sum/switch-ins) received after cut-off time
  • Cause: Pricing distortions in domestic silver ETF due to heightened demand and ongoing supply constraints
  • Redemptions remain unrestricted and fully operational
  • Fresh registrations under systematic transaction facilities are permitted
  • Existing Systematic Investment Plan (SIP) instalments will continue as usual
  • Duration: Temporary suspension until further notice from Axis AMC
  • Issuer: Axis Asset Management Company Limited (CIN: U65991MH2009PLC189558)
  • Circular Number: 71/2025-26

Regulatory Changes

No regulatory framework changes. This is an operational measure taken by Axis AMC under its discretion to protect investor interests during abnormal market conditions affecting silver ETF pricing.

Compliance Requirements

  • Distributors and investors must note that no new lump-sum or switch-in applications will be accepted after 3:00 PM on October 13, 2025
  • The notice-cum-addendum forms an integral part of the Scheme Information Document (SID) and Key Information Memorandum (KIM)
  • All other terms and conditions of the SID and KIM remain unchanged

Important Dates

  • October 13, 2025, 3:00 PM: Cut-off time - last opportunity for lump-sum/switch-in subscriptions
  • Post October 13, 2025, 3:00 PM: Suspension becomes effective
  • Reinstatement Date: To be announced by Axis AMC (no specific timeline provided)

Impact Assessment

Investor Impact: Investors wishing to invest lump-sum amounts or switch into the scheme will be unable to do so until the suspension is lifted. However, the measure protects new investors from entering at distorted valuations. Existing investors can continue to redeem without restrictions.

Market Impact: Limited broader market impact as this affects only one specific Fund of Fund scheme. The suspension reflects broader supply-demand imbalances in the domestic silver ETF market, which may be affecting multiple silver-focused investment products.

Operational Impact: Systematic investment plans and systematic transaction facilities remain operational, allowing investors to continue disciplined investing. The temporary nature suggests management expects market conditions to normalize in the near term.

Risk Mitigation: The proactive suspension demonstrates prudent risk management to prevent investor losses from short-term pricing anomalies in the underlying silver ETF market.

Impact Justification

Temporary operational measure affecting specific mutual fund scheme due to market conditions; does not impact broader market operations or trading. Redemptions and SIPs continue unaffected.