The company cited adverse market conditions and a shortage of physical silver in the domestic market as the reason behind the suspension.
Silver prices in India have reached all-time high levels, driven by robust domestic demand, constrained supply, and global market factors. Physical silver is trading at ₹185 per gram and ₹1,85,000 per kilogram, reflecting a steep premium over international benchmarks.
Also Read: Silver prices surge in India amid record demand and ETF premiums
The fund house said domestic silver is currently trading at a premium to international prices, which has impacted the valuation of the scheme that invests primarily in the Tata Silver Exchange Traded Fund (ETF).
During the suspension period, existing SIPs and STPs will continue to operate, while redemptions, switch-outs, and Systematic Withdrawal Plans (SWPs) will remain permitted in accordance with the scheme’s guidelines, the fund house said.
Investments and switch-in requests received and time-stamped on or before 3 p.m. on October 13, 2025, will be accepted and processed at the applicable Net Asset Value (NAV), it said.
Tata Mutual Fund clarified that the move is temporary in nature and will remain in place until further notice. The addendum, dated October 13, 2025, forms an integral part of the Scheme Information Document (SID) and Key Information Memorandum (KIM).
The fund added that all other terms, conditions, and risk parameters of the scheme remain unchanged.
Also Read: Kotak Mutual Fund temporarily suspends lump-sum subscriptions to Kotak Silver ETF Fund of Fund