Tue Oct 14 07:10:00 UTC 2025: ## Silver Lining Tarnished? Tata Mutual Fund Halts Investments in Silver ETF Amid Shortage

**MUMBAI – October 13, 2025 -** Tata Mutual Fund has announced a temporary halt to new investments in its Tata Silver ETF Fund of Fund, citing a global shortage of physical silver and resulting price premiums. Effective Tuesday, October 14, 2025, investors will be unable to make lump sum purchases, switch funds into the scheme, or register new Systematic Investment Plans (SIPs) and Systematic Transfer Plans (STPs).

The move comes as silver exchange-traded funds (ETFs), backed by physical silver, are trading at a premium to their respective indicative net asset values (iNAVs) due to the domestic shortage and the higher cost of physical silver relative to futures prices.

“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,” Tata MF stated in a release. “Therefore, the premium in domestic silver prices directly impacts the valuation of the Scheme.”

While new investments are suspended, existing SIP and STP registrations will continue to operate as normal. Redemption requests, switch-out transactions, and Systematic Withdrawal Plans (SWPs) will also remain unaffected during this period. Transactions time-stamped on or before 3:00 PM IST today (October 13, 2025) will be processed at the applicable Net Asset Value (NAV).

The fund house has assured investors that the suspension is temporary and will be lifted once market conditions stabilize. No specific timeline for the resumption of investments has been provided.

The Tata Silver ETF Fund of Fund is an open-ended scheme that invests in the Tata Silver Exchange Traded Fund, which aims to replicate the domestic price of silver. The suspension reflects the ongoing challenges within the silver market and underscores the impact of supply chain issues on investment products tied to physical commodities. Investors are advised to monitor the situation closely and consult with financial advisors before making any investment decisions.

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