Tata Mutual Fund suspends fresh investments in Silver ETF Fund of Fund. Here’s why
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Tata Mutual Fund has announced a temporary suspension of new investments in its Tata Silver ETF Fund of Fund (FoF), citing a shortage of physical silver and prevailing market conditions. According to the Tata mutual fund addendum issued on October 13, 2025, the suspension will take effect from October 14, 2025. It will impact all lump-sum investments, switch-ins, and new registrations of SIPs and STPs in the scheme.
The Tata Silver ETF Fund of Fund is an open-ended scheme that invests in the Tata Silver Exchange Traded Fund (Tata Silver ETF), which tracks domestic silver prices. According to the report, domestic silver is currently trading at a premium compared to international prices, and this premium has directly impacted the scheme's valuation.
The fund house stated in the report that all existing SIP and STP registrations under the scheme will remain operational. However, only purchase or switch-in transactions and new SIP or STP registrations with a time-stamp before 3 PM on October 13, 2025, will be accepted and processed at the applicable NAV.
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During the suspension period, the report clarified that investors will still be able to redeem, switch out, or withdraw systematically from the scheme as outlined in the Scheme Information Document. The suspension, as stated in the report, is temporary and will remain in effect until further notice.
The report also stated that this revision will be applied prospectively and will become an integral part of the Scheme Information Document (SID) and Key Information Memorandum (KIM) cum Application Form. According to the report, all other terms, conditions, and the scheme's risk-o-meter will remain unchanged.
Tata Mutual Fund’s decision arises amidst increasing volatility in precious metals markets and supply-side constraints impacting the availability of physical silver. The report concluded by reiterating that mutual fund investments carry market risks and advised investors to carefully review all scheme-related documents before investing.