Overview

• Kotak Mutual Fund suspended lumpsum and switch-in subscriptions to its Kotak Silver ETF Fund of Fund, keeping SIPs, STPs and redemptions open and pledging to reopen once premiums normalise.
• The fund house flagged domestic spot silver trading roughly 10–12% over import parity after rising from about 0.5% in early September, noting an intraday spike to 12% and warning the shortage may persist through October.
• Silver topped $50 per ounce on October 9, and several Indian silver ETFs traded 10–18% above iNAV, though prices cooled on Friday with declines reported in major funds.
• AMFI chief Venkat Chalasani described the elevated premiums as a temporary, supply-driven distortion rather than a structural problem in the ETF ecosystem.
• Advisers cautioned about tracking and liquidity risks stemming from tight physical supply, market‑maker constraints and trading‑hour gaps, as gold and silver ETF assets in India recently crossed about Rs 1 trillion.