Tata Mutual Fund temporarily halts fresh investments in Silver ETF Fund of Fund amid market volatility

In an addendum dated October 13, 2025, Tata Mutual Fund stated that the suspension will take effect from October 14, 2025.

Tata Mutual Fund joins the growing list of fund houses that have announced a temporary suspension of fresh investments in their Silver FoFs. The fund house announced this decision regarding the Tata Silver ETF Fund of Fund (FoF), citing market distortions and a shortage of physical silver in the domestic market. The move mirrors a similar step taken in the last few days by UTI Asset Management Company (AMC), SBI MF and Kotak MF which also paused inflows into its silver ETF Fund of Fund.

In an addendum dated October 13, 2025, Tata Mutual Fund stated that the suspension will take effect from October 14, 2025. The decision covers all lump-sum investments, switch-ins, and new registrations of Systematic Investment Plans (SIPs) and Systematic Transfer Plans (STPs) into the scheme. However, existing SIPs and STPs will continue unaffected.

According to the fund house, the decision was driven by “prevailing market conditions and shortage of physical silver in the domestic market,” which have caused Indian silver prices to trade at a premium to international levels. This discrepancy, the statement said, directly impacts the scheme’s valuation, prompting the temporary halt.

During this suspension, redemptions, switch-outs, and Systematic Withdrawal Plans (SWPs) will continue to be allowed, in line with the scheme’s existing guidelines. Tata Mutual Fund emphasized that the suspension is temporary and will remain in effect until further notice.

The Tata Silver ETF Fund of Fund invests primarily in the Tata Silver Exchange Traded Fund, which seeks to track domestic silver prices.  Fund houses have taken a cautious stance to protect existing investors from potential mispricing. On September 13, Silver Futures rose around 6 percent.

Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.