Tata Mutual Fund Temporarily Suspends Investments into Tata Silver ETF Fund of Fund

Tata Mutual Fund has announced a temporary suspension of all new investments into its Tata Silver ETF Fund of Fund, effective Tuesday, October 14, 2025. This includes investment into lump sum purchases, switch-ins, and new registrations for Systematic Investment Plans (SIPs) and Systematic Transfer Plans (STPs).

The Tata Silver ETF Fund of Fund is an open-ended scheme that invests in the Tata Silver Exchange Traded Fund, which aims to replicate or track the domestic price of silver.

Why Tata MF Paused Investment in Silver ETF?

This move comes in response to an ongoing global and domestic shortage of physical silver, which has led to a consistent premium in silver spot prices compared to futures. As a result, Silver Exchange Traded Funds (ETFs), which are backed by physical silver holdings, are currently trading above their indicative Net Asset Values (iNAVs).

In an official statement, Tata Mutual Fund noted: “Due to current market conditions and a shortage of physical silver in the domestic market, silver prices are trading at a premium relative to international benchmarks. This price disparity is directly affecting the valuation of the scheme.”

To maintain the integrity of the fund’s pricing and protect the interests of existing investors, the AMC has decided to pause fresh inflows until further notice.

Key Details of the Suspension

• All new lump sum investments, switch-ins, and registrations for SIPs and STPs into the scheme will be suspended starting October 14, 2025.
• Existing SIP and STP mandates already registered under the scheme will continue without interruption.
• Transactions (including purchases, switch-ins, or SIP/STP registrations) submitted and time-stamped on or before 3:00 PM, October 13, 2025, will be accepted and processed at the applicable NAV.
• Redemptions, switch-outs, and Systematic Withdrawal Plans (SWPs) will remain fully operational during this period.

Also Read: Why India Is Facing a Severe Silver Shortage Ahead of Diwali?

Tata Mutual Fund emphasised that this suspension is temporary in nature and will remain in place until further notice, depending on how market conditions evolve.

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