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 October 14, 2025 cut-off time.

Summary

HDFC Mutual Fund has imposed temporary restrictions on subscriptions in HDFC Silver ETF Fund of Fund effective after 3:00 PM on October 14, 2025. The fund house has capped lumpsum purchases, switch-ins, and new systematic registrations at Rs. 1 lakh per PAN per day (at first holder level) to protect investor interests amid recent volatility in silver prices. All existing systematic investments and redemption transactions will continue to be processed normally.

Key Points

  • Subscription limit of Rs. 1 lakh per PAN per day imposed on HDFC Silver ETF Fund of Fund
  • 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 (SIP, STP-in, etc.)
  • Existing systematic registrations (SIP, STP) will continue unaffected
  • All redemptions and switch-outs will continue to be processed normally
  • Measure implemented to protect investor interests during silver price volatility
  • Restriction to remain until further notice

Regulatory Changes

This is an operational change rather than a regulatory mandate. HDFC Mutual Fund has voluntarily implemented subscription restrictions as a risk management measure in response to market conditions. The addendum forms an integral part of the Scheme Information Document (SID) and Key Information Memorandum (KIM).

Compliance Requirements

  • Investors planning to invest more than Rs. 1 lakh per day will need to split their investments across multiple days
  • Distributors and platforms must inform investors about the subscription limits
  • First holder PAN will be used to track the daily limit
  • All subscription requests above the limit will be rejected or processed only up to the permissible amount

Important Dates

  • October 14, 2025 (3:00 PM): Cut-off time after which subscription restrictions become effective
  • October 15, 2025: Addendum dated
  • Until further notice: Duration of temporary restriction

Impact Assessment

Market Impact: Limited to investors of HDFC Silver ETF Fund of Fund. The restriction may temporarily reduce inflows into the fund during the period of silver market volatility.

Investor Impact:

  • New investors and those looking to make large investments will be limited to Rs. 1 lakh per day
  • Existing SIP/STP investors can continue their investments without disruption
  • Investors seeking redemption are not affected
  • Measure protects existing investors from potential dilution during volatile market conditions

Operational Impact: Fund house aims to manage liquidity and portfolio composition more effectively during volatile silver price movements. The restriction allows better control over fund flows and helps maintain orderly portfolio management.

Impact Justification

Temporary restriction affects new investors and large subscriptions in HDFC Silver ETF FOF due to silver market volatility, but existing systematic plans and redemptions remain unaffected. Impact limited to specific fund investors.