Description

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

Summary

Tata Mutual Fund has temporarily suspended lumpsum investments, switch-in transactions, and fresh registrations of Systematic Investment Plans (SIP) and Systematic Transfer Plans (STP) in Tata Silver ETF Fund of Fund effective October 14, 2025. The suspension is due to prevailing market conditions where domestic silver is trading at a premium relative to international prices due to physical silver shortage in the domestic market. All existing SIPs and STPs remain operational, and redemptions, switch-outs, and Systematic Withdrawal Plans (SWP) continue to be permitted.

Key Points

  • Temporary suspension of lumpsum investments in Tata Silver ETF Fund of Fund
  • Suspension of switch-in transactions into the scheme
  • Suspension of fresh SIP and STP registrations
  • All existing SIP and STP registrations continue to operate normally
  • Redemptions, switch-outs, and SWP remain fully operational
  • Suspension caused by domestic silver trading at premium due to physical silver shortage
  • Purchase/switch-in transactions and fresh SIP/STP registrations time stamped on or before 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 addendum modifies the Scheme Information Document (SID) and Key Information Memorandum (KIM) of Tata Silver ETF Fund of Fund. The changes are temporary operational restrictions rather than permanent regulatory modifications.

Compliance Requirements

  • The addendum forms an integral part of the SID/KIM cum Application Form
  • All other terms and conditions, risk-o-meter of schemes, SID and KIM cum Application Form read with other addendums remain unchanged
  • Standard disclosure required: “Mutual Fund Investments are subject to market risks, read all scheme related documents carefully”
  • Tata Mutual Fund Corporate Identity Number: TAMPL – U65990-MH-1994-PTC-077090

Important Dates

  • Addendum Date: October 13, 2025
  • Effective Date: October 14, 2025
  • Last Date for Acceptance: Transactions time stamped on or before 3:00 PM on October 13, 2025 will be accepted and processed at applicable NAV
  • Duration: Until further notice

Impact Assessment

Market Impact: The suspension reflects broader domestic silver market conditions where physical silver shortage has caused domestic prices to trade at a premium relative to international prices. This premium directly impacts the scheme’s valuation.

Investor Impact: Investors seeking to make new investments in Tata Silver ETF Fund of Fund through lumpsum, switch-in, or fresh SIP/STP registrations will be unable to do so during the suspension period. However, investors with existing SIP/STP commitments can continue their investments, and all investors retain full redemption rights.

Operational Impact: The fund house maintains normal operations for redemptions and existing systematic plans, limiting disruption to ongoing investor relationships while protecting the scheme from potential adverse impacts of premium pricing in domestic silver markets.

Impact Justification

Impacts only investors in Tata Silver ETF Fund of Fund. Temporary measure due to market conditions affecting one specific scheme. Redemptions continue normally and existing SIPs remain operational.