Tata Mutual Fund announces suspension of subscription to units in Tata Silver ETF Fund of Fund

Tata Mutual Fund has become the fourth fund house to temporarily halt subscriptions in its Silver ETF Fund of Funds. The AMC announced that all lump-sum investments, switch-ins, and new registrations for SIPs and STPs into the Tata Silver ETF FoF have been suspended until further notice.

This suspension is effective from October 14, and all existing SIP and STP registered under the scheme shall remain operational.

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The purchase, Switch-in transaction, fresh registration of SIP / STP received into the scheme time-stamped on or before 3.00 PM of October 13, shall be accepted and processed at the applicable NAV.

“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. Therefore, the premium in domestic silver prices directly impacts the valuation of the scheme,” the fund house said.

Please note that during this suspension period, redemptions, Switch-out, Systematic Withdrawal Plan (SWP) will continue to be permitted in accordance with the terms outlined in the scheme information document and the aforesaid suspension is temporary in nature and shall continue only till further notice in this regard, the notice cum addendum by the fund house said.

Tata Silver ETF Fund of Fund is an open-ended Fund of Fund scheme investing in Tata Silver Exchange Traded Fund (Tata Silver ETF). Tata Silver ETF is an open-ended scheme replicating/tracking the Domestic Price of Silver

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On Thursday, October 9, Kotak Mutual Fund announced the suspension of subscriptions in its Silver ETF Fund of Fund (FoF). This was followed by UTI Mutual Fund and SBI Mutual Fund, which on Saturday announced a similar suspension of fresh subscriptions in their respective Silver ETF FoFs.