Description

Tata Mutual Fund temporarily suspends lumpsum investments, switch-ins, and fresh SIP/STP registrations in Tata Silver ETF Fund of Fund effective October 14, 2025, due to premium in domestic silver prices caused by physical silver shortage.

Summary

Tata Mutual Fund has announced a temporary suspension of subscription to units in Tata Silver ETF Fund of Fund effective October 14, 2025. This action is due to prevailing market conditions and shortage of physical silver in the domestic market, causing silver to trade at a premium relative to international prices. The suspension applies to lumpsum investments, switch-ins, and fresh SIP/STP registrations, while existing SIPs/STPs and all redemption facilities remain operational.

Key Points

  • Temporary suspension of lumpsum investments, switch-ins, and fresh SIP/STP registrations in Tata Silver ETF Fund of Fund
  • Effective date: October 14, 2025 (applicable to transactions time-stamped after 3:00 PM on October 13, 2025)
  • Cause: Physical silver shortage in domestic market leading to premium pricing relative to international prices
  • Existing SIP and STP registrations will continue to operate normally
  • Redemptions, switch-outs, and Systematic Withdrawal Plans (SWP) remain permitted as per SID terms
  • Transactions received by 3:00 PM on October 13, 2025 will be processed at applicable NAV
  • Suspension is temporary and will continue until further notice

Regulatory Changes

This is an operational change rather than a regulatory change. The addendum modifies the Scheme Information Document (SID) and Key Information Memorandum (KIM) of Tata Silver ETF Fund of Fund to reflect the temporary suspension of certain transaction types.

Compliance Requirements

  • Investors cannot make new lumpsum investments in the scheme from October 14, 2025
  • Investors cannot execute switch-in transactions to the scheme from the effective date
  • Investors cannot register fresh SIPs or STPs into the scheme from the effective date
  • All other terms and conditions, risk-o-meter of schemes, SID and KIM cum Application Form remain unchanged
  • The addendum forms an integral part of the SID/KIM cum Application Form

Important Dates

  • October 13, 2025: Addendum date; last day to submit purchase, switch-in, or fresh SIP/STP registrations (by 3:00 PM)
  • October 14, 2025: Effective date of subscription suspension
  • Until Further Notice: Duration of the temporary suspension

Impact Assessment

Market Impact: The suspension reflects stress in the domestic silver market due to physical shortage, causing prices to trade at a premium to international levels. This indicates supply-demand imbalance in the commodity market.

Investor Impact: New investors or those looking to increase exposure to silver through this fund of fund will be unable to do so during the suspension period. However, existing investors with ongoing SIPs/STPs are not affected and can continue their systematic investments. All investors retain full redemption rights.

Fund Impact: The underlying scheme, Tata Silver ETF, tracks domestic silver prices, and the premium pricing directly impacts fund valuation. The suspension is a protective measure to manage fund operations during abnormal market conditions.

Operational Impact: Limited to Tata Silver ETF Fund of Fund only. Other schemes of Tata Mutual Fund are not affected by this suspension.

Impact Justification

Affects investors in Tata Silver ETF FoF by restricting new investments, but existing SIPs/STPs continue and redemptions remain operational. Impact limited to one specific scheme due to temporary market conditions.