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Kotak Mutual Fund, Aditya Birla Sun Life Mutual Fund, and Axis Mutual Fund reopened Silver ETF Fund of Funds after price correction.
The resumption in silver ETFs came amid the correction in prices over the past few days.
Several mutual fund companies have reopened their Silver Exchange Traded Fund (ETF) Fund of Funds (FoF) schemes for new investments, after imposing temporary restrictions earlier this month.
Kotak Mutual Fund resumed subscriptions to its Kotak Silver ETF Fund of Fund from October 23, allowing investors to invest via lump-sum, switch-ins, or start new SIPs and STPs.
Likewise, Aditya Birla Sun Life Mutual Fund reopened its Aditya Birla Sun Life Silver ETF Fund of Fund from October 23, permitting fresh investments through lump-sum, switch-ins, SIPs, and STPs. Axis Mutual Fund had resumed subscriptions to its Axis Silver Fund of Fund slightly earlier, from October 20.
The resumption in silver ETFs came amid the correction in prices over the past few days. Silver ETFs corrected over 18 per cent last week, marking a steep fall after the record rally.
At the International spot market, silver was trading at $48.6 per ounce with a fall of 0.72 per cent around 1:30 PM on October 26.
Silver prices were rising due to a combination of strong demand and limited supply. The gold-silver ratio currently stands at 83:1, well above its historical average of 60:1, making silver relatively cheaper than gold and attractive for investors. Institutional and retail interest was also driving prices up, with global silver ETP holdings reaching record highs of over US$40 billion in June 2025 and Indian retail demand growing 7% year-on-year.
On the supply side, silver has faced a structural deficit for five consecutive years, with a projected 21% shortfall in 2025. Above-ground inventories have fallen sharply from 22 months of supply in 2020 to just 13 months in 2023, and known reserves could be depleted by 2050 if current consumption continues. This imbalance of high demand and constrained supply was putting upward pressure on silver prices, noted Kotak Mutual Fund in its report.
Aksha Kamboj, Vice President, India Bullion & Jewellers Association (IBJA) and Executive Chairperson, Aspect Global Ventures silver has continued its downswing after consecutive price drops, with domestic prices trading around Rs 1,47,033 per kg. The decline is mainly due to profit-taking and weaker industrial demand.
“Long-term factors, like supply constraints and industrial use, remain strong, but at the moment, the market is looking at consolidation rather than growth. Silver is better at this point as a strategic buffer than a short-term momentum trade,” Kamboj added.
Varun Yadav is a Sub Editor at News18 Business Digital. He writes articles on markets, personal finance, technology, and more. He completed his post-graduation diploma in English Journalism from the Indian Inst…Read More
Varun Yadav is a Sub Editor at News18 Business Digital. He writes articles on markets, personal finance, technology, and more. He completed his post-graduation diploma in English Journalism from the Indian Inst… Read More
October 26, 2025, 13:31 IST
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