In order to shield current investors from any mispricing, fund companies have adopted a cautious approach. Silver Futures increased by almost 6% on September 13.
The increasing number of fund institutions that have declared a temporary halt to new investments in their Silver FoFs includes Tata Mutual Fund. Citing market imbalances and a lack of real silver in the local market, the fund house made this announcement about the Tata Silver ETF Fund of Fund (FoF). The action is identical to one that UTI Asset Management Company (AMC), SBI MF, and Kotak MF took a few days ago when they similarly stopped inflows into their silver ETF Fund of Funds.
According to an October 13, 2025, amendment from Tata Mutual Fund, the suspension will begin on October 14, 2025. All lump-sum deposits, switch-ins, including new Systematic Investment Plans (SIPs) and Systematic Transfer Plans (STPs) registered into the program are covered by the ruling. Existing SIPs and STPs, however, will not change.
The investment company claims that “prevailing market circumstances and paucity of actual silver in the local market,” which have led to Indian silver prices trading at a premium to global levels, were the driving forces behind the decision. The statement claimed that this disparity had a direct effect on the scheme’s worth and was the reason for the brief suspension.
In accordance with the current rules of the plan, redemptions, switch-outs, and Systematic Withdrawal Plans (SWPs) will remain permitted throughout this suspension. The ban is just temporary and will last till further notice, Tata Mutual Fund said.
The Tata Silver Exchange Traded Fund, which aims to follow domestic silver prices, is the primary investment vehicle for the Tata Silver ETF Fund of Funds. In order to shield current investors from any mispricing, fund companies have adopted a cautious approach. Silver Futures increased by almost 6% on September 13.