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  1. Tata Mutual Fund suspends fresh investments in Silver ETF Fund of Fund amid surging silver prices

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Tata Mutual Fund suspends fresh investments in Silver ETF Fund of Fund amid surging silver prices

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2 min read | Updated on October 14, 2025, 07:29 IST

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SUMMARY

The Tata Silver ETF Fund of Fund is an open-ended fund that invests in the Tata Silver Exchange Traded Fund (Tata Silver ETF), which in turn tracks the domestic price of silver.

Silver ETF

Tata Mutual Fund’s move comes amid a broader industry trend, as silver prices continue to surge and supply constraints persist. | Image: Shutterstock

Tata Mutual Fund has temporarily halted lump sum investments, switch-ins, and new registrations of SIPs and STPs into the Tata Silver ETF Fund of Fund (FoF) scheme, effective October 14, 2025.
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The Tata Silver ETF Fund of Fund is an open-ended fund that invests in the Tata Silver Exchange Traded Fund (Tata Silver ETF), which in turn tracks the domestic price of silver.
Why the suspension?
Tata Mutual Fund cited prevailing market conditions and a shortage of physical silver in the domestic market as the primary reasons. Due to this supply squeeze, silver is currently trading at a premium in India compared to international prices. This premium directly affects the valuation of the scheme.

"This is to inform investors that, due to prevailing market conditions and shortage of physical silver in the domestic market, silver is trading at a premium relative to international prices. Therefore, the premium in domestic silver prices directly impacts the valuation of the Scheme," Tata MF said.

In light of the current market scenario, Tata Mutual Fund has decided to temporarily suspend all lumpsum investment, switch-in into the scheme & fresh registration of systematic investment plan (SIP) and Systematic transfer plan (STP) into the scheme from the effective date, it added.

During this suspension period, redemptions, switch-out, systematic withdrawal plan (SWP) will continue to be permitted. The suspension is temporary in nature and will continue only till further notice, it said.

Which other mutual fund houses have suspended investments in Silver ETF FoFs?

Tata Mutual Fund’s move comes amid a broader industry trend, as silver prices continue to surge and supply constraints persist. Several other AMCs have already taken similar action.

SBI Mutual Fund has announced a temporary suspension of fresh lump-sum investments in its SBI Silver ETF Fund of Fund (FoF), effective October 13, 2025.

UTI Mutual Fund also announced a suspension of fresh subscriptions in its Silver ETF FoF, effective October 13, 2025.

On 10 October, Kotak Mutual Fund implemented a comparable restriction on its own silver ETF FoF scheme. These actions mark a growing trend among fund houses responding to volatility and supply-side pressures in the silver market.
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About The Author

sangeeta-ojha.webp
Sangeeta Ojha is a business and finance journalist with over 18 years of experience across leading media platforms, including Mint and India Today. Passionate about personal finance, she has built a reputation for covering a wide range of PF topics—from income tax and mutual funds to insurance, savings, and investing.

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