Description

Axis Mutual Fund has temporarily suspended lumpsum and switch-in subscriptions for Axis Silver ETF Fund of Fund effective October 13, 2025 at 3:00 PM due to pricing distortions in domestic silver ETF markets caused by heightened demand and supply constraints.

Summary

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

Key Points

  • Temporary suspension of lumpsum and switch-in subscriptions for Axis Silver ETF Fund of Fund
  • Effective after 3:00 PM cut-off timing on October 13, 2025
  • Reason: Pricing distortions in domestic silver ETF markets due to high demand and supply constraints
  • No restrictions on redemptions, SWP, switch-out, or STP-out transactions
  • Fresh and existing Systematic Investment Plans (SIP) and Systematic Transfer Plans (STP) will continue to operate normally
  • Fresh registrations under systematic transaction facilities remain unrestricted
  • Suspension will remain in effect until further notice from Axis AMC

Regulatory Changes

No regulatory changes introduced. This is an operational measure taken by Axis AMC to protect investor interests during a period of market distortion in the underlying silver ETF market.

Compliance Requirements

  • NSE has disabled the Axis Silver ETF Fund of Fund scheme for fresh subscriptions through lumpsum and switch-in transactions on NSE MF Invest Platform
  • Members must ensure no new lumpsum or switch-in applications are accepted for this scheme post 3:00 PM on October 13, 2025
  • All other transaction types (redemptions, SWP, SIP, STP) must continue to be processed normally

Important Dates

  • October 13, 2025, 3:00 PM: Cut-off time after which no fresh lumpsum or switch-in subscriptions will be accepted
  • Duration: Temporary suspension remains in effect until further notice from Axis AMC

Impact Assessment

Market Impact: Limited to investors seeking to make fresh lumpsum investments or switch-ins to Axis Silver ETF Fund of Fund. The measure is protective in nature, aimed at preventing new investors from entering the scheme during a period of pricing distortion.

Operational Impact:

  • Existing investors can continue redemptions and systematic withdrawals without restriction
  • Systematic investment and transfer plans (both new and existing) remain fully operational
  • Only affects new lumpsum subscriptions and switch-in transactions

Investor Impact:

  • New investors wanting to make lumpsum investments in this specific scheme will need to wait until the suspension is lifted
  • Existing investors retain full flexibility for redemptions and systematic transactions
  • Protects potential new investors from exposure to short-term pricing anomalies in the silver ETF market

Duration: Temporary measure with indefinite timeline pending normalization of silver ETF market pricing

Impact Justification

Temporary operational suspension affecting one specific mutual fund scheme due to market distortions; redemptions and systematic plans remain operational, limiting overall investor impact