Tata Mutual Fund launched Silver ETF Fund of Fund through a new fund offer

Tata Mutual Fund has launched a new open-ended fund of fund scheme, Tata Silver ETF Fund of Fund, with an objective to provide returns that are in line with returns provided by Tata Silver Exchange Traded Fund. The scheme is open for subscription between January 2, 2024 and January 16, 2024, with a minimum subscription amount of Rs 5,000. There is no entry load, but an exit load of 1% is applicable for redemptions or withdrawals exceeding 12% of the original investment amount within 365 days of allotment.

The investment objective of the Scheme is to seek to provide returns that are in line with returns provided by the Tata Silver Exchange Traded Fund. However, there is no assurance or guarantee that the investment objective of the Scheme will be achieved.

How the fund is different from other existing schemes of Tata Mutual Fund:

Tata Silver ETF Fund of Fund is an Open-ended fund of fund scheme investing in units of Tata Silver Exchange Traded Fund. Tata Mutual Fund has one ETF Fund of Fund – Domestic i.e., Tata Nifty India Digital ETF Fund of Fund.

Below is the comparison of this fund with another existing scheme/s in the same category (i.e. Exchange Traded Fund) of Tata Mutual Fund:

Funds Allocation 

Fund Manager 

Tapan Patel, Age: 35, Qualification: CFA, MFA, BBA, Total Experience (in years): 16

Peer Silver ETF FoF 

Other Silver ETFs and FoF – Trailing Returns (%) 

Risks associated with the scheme (NFO)

Tracking Error: The performance of the Scheme may not be commensurate with the performance of the underlying benchmark on any given day or over any given period, referred to as tracking error.

Price risk: Fluctuations in the price of silver

Liquidity risk: Inability to buy/sell appropriate quantity of silver

Event risk/Custody Risk: Risk of loss, damage, theft, impurity etc. of silver

Liquidity or Marketability Risk: This refers to the ease with which a security can be sold at or near its valuation yield-to-maturity (YTM).

Credit Risk: Credit risk or default risk refers to the risk that an issuer of a fixed-income security may default (i.e., will be unable to make timely principal and interest payments on the security). Normally, the value of a fixed-income security will fluctuate depending upon the changes in the perceived level of credit risk as well as any actual event of default. The greater the credit risk, the greater the yield required for someone to be compensated for the increased risk.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. The information is based on various secondary sources on the internet and is subject to change. Please consult with a financial expert before making investment decisions.