HDFC Mutual Fund has reopened full investment access in its Silver ETF Fund of Fund (FoF), lifting the temporary daily investment cap of Rs 1 lakh per investor. The fund house had imposed this limit last week, starting from October 14 (post 3:00 pm), as a precaution amid a sharp rise in domestic silver prices.
Investors can now make lump-sum investments, switch-ins, and register new Systematic Investment Plans (SIPs) and Systematic Transfer Plans (STPs) without any restrictions. Existing SIPs and STPs were never affected during the cap period, and redemptions were allowed throughout, ensuring investor holdings remained flexible.
The daily cap was introduced after Indian silver rates surged and began trading at a premium compared to global benchmarks. Supply constraints in the domestic market were cited as a key reason for the spike. HDFC Mutual Fund explained that the cap was a protective measure for investors, allowing subscriptions to continue in a controlled manner rather than stopping them entirely. 
Other fund houses, including Kotak Mutual Fund, SBI Mutual Fund, UTI Mutual Fund, and Groww Mutual Fund, have temporarily halted new lump-sum and switch-in investments in their Silver ETF FoFs. Some, like Tata Mutual Fund, ICICI Prudential, and Aditya Birla Sun Life Mutual Fund, took stricter steps by pausing all new investments, including SIPs, during this period.
HDFC Mutual Fund’s measured approach, using a quantitative cap instead of a complete suspension, reflects a cautious yet investor-friendly strategy. The fund house stated that both the temporary restriction and its removal were made keeping investor interests in mind amid rapidly changing market conditions.
The silver market has now shown signs of stabilization, and investor interest in silver-based passive schemes continues to be strong. Many see these schemes as a hedge against inflation and currency fluctuations, and the renewed investment access is expected to attract fresh participation from retail and institutional investors alike.
