Description

HDFC Mutual Fund temporarily restricts subscriptions in HDFC Silver ETF Fund of Fund to Rs. 1 lakh per PAN per day due to recent volatility in silver prices, effective after 3:00 PM on October 14, 2025.

Summary

HDFC Mutual Fund has issued an addendum to the Scheme Information Document (SID) and Key Information Memorandum (KIM) of HDFC Silver ETF Fund of Fund, implementing temporary restrictions on subscriptions effective after the cut-off time of 3:00 PM on October 14, 2025. The restrictions limit new subscriptions to Rs. 1 lakh per PAN per day at the first holder level, implemented as a protective measure in response to recent volatility in silver prices.

Key Points

  • Subscription limit of Rs. 1 lakh per PAN per day (at first holder level) imposed
  • Restriction effective after cut-off time (3:00 PM) on October 14, 2025
  • Applies to lumpsum purchases and switch-ins
  • Applies to new systematic registrations including SIP and STP-in
  • Existing systematic registrations (SIP, STP, etc.) will continue to be processed without restrictions
  • All redemption and switch-out transactions remain unaffected
  • Measure implemented to protect investor interests during silver price volatility
  • Restriction is temporary and will remain until further notice

Regulatory Changes

This is an operational restriction implemented by HDFC Mutual Fund as a risk management measure under existing regulatory framework. The addendum forms an integral part of the SID/KIM of the scheme as amended from time to time.

Compliance Requirements

For Investors:

  • New subscriptions (lumpsum, switch-ins) limited to maximum Rs. 1 lakh per PAN per day
  • New systematic investment registrations (SIP, STP-in) limited to maximum Rs. 1 lakh per PAN per day
  • Limits apply at the first holder level

For Fund House:

  • Process all existing systematic registrations without restrictions
  • Continue processing all redemptions and switch-outs normally
  • Update SID/KIM documentation to reflect temporary restrictions

Important Dates

  • October 14, 2025 (3:00 PM): Subscription restrictions become effective after this cut-off time
  • October 15, 2025: Addendum dated and issued
  • Duration: Until further notice from HDFC Mutual Fund

Impact Assessment

Market Impact:

  • Limited direct market impact as restrictions apply to one specific fund product
  • Reflects broader silver market volatility concerns
  • May indicate fund house anticipating continued silver price fluctuations

Investor Impact:

  • New investors and those planning large lumpsum investments face restrictions
  • Daily subscription limit of Rs. 1 lakh per PAN may require spreading larger investments over multiple days
  • Existing SIP/STP investors unaffected and can continue their systematic investments
  • All redemption rights fully preserved

Operational Impact:

  • Protects the fund from large sudden inflows during volatile market conditions
  • Allows fund manager to maintain orderly portfolio management
  • Enables better liquidity management in underlying silver ETF holdings
  • Temporary nature suggests fund house monitoring silver market conditions for normalization

Impact Justification

Temporary subscription restrictions on a specific fund product to protect investor interests during silver price volatility. Affects new investments but existing SIPs and redemptions continue normally. Medium impact as it limits new investor access but doesn't affect existing investors.