Silver ETF: Nippon India Mutual Fund launches a silver ETF, FOF

Nippon India Mutual Fund (NIMF) on Wednesday announced the launch of the Nippon India Silver ETF, which invests in physical silver and silver-related instruments.

He also announced the launch of the Nippon India Silver ETF Fund of Fund (FOF) which will invest in shares of Nippon India Silver ETF.

“With the industry’s first Silver FoF, investors can participate without the need to have a demat account and can also opt for Systematic Investment Plans (SIPs),” NAM India said.

New Fund Offerings (NFOs) for both regimes will open on January 13 and close on January 27.

The minimum investment amount required during the Nippon India Silver ETF NFO is Rs 1,000 and in multiples of Rs 1 thereafter; For Nippon India Silver ETF Fund of Fund, the minimum investment amount required during NFO is Rs 100 and in multiples of Rs 1 thereafter.

The ETF would invest in physical silver and silver-related instruments and the performance of the program will be compared to the national price of silver (based on the daily LBMA Silver spot fixing price). The physical silver will be 99.9% (999 parts per thousand) pure in accordance with London Bullion Market Association (LBMA) Good Delivery standards, NAM India said.

“The investment objective of Nippon India Silver ETF is to generate returns consistent with the performance of physical silver in domestic prices, before expenses, subject to tracking error. While the investment objective of Nippon India Silver ETF Fund of Fund (FOF) is to seek to provide returns which closely correspond to the returns provided by Nippon India Silver ETF by investing in units of Nippon India Silver ETF, however, there can be no assurance or guarantee that the investment objective of the Schemes will be achieved,” NAM India said in a press release.

“Silver has historically had a relatively low correlation with Indian equity indices and therefore the Silver ETF and the FOF Silver ETF will provide investors with an opportunity to diversify their portfolio as part of their asset allocation” , said Hemen Bhatia, Head of ETFs, Nippon India Mutual. Funds.

Aditya Birla Sun Life AMC has also launched its silver ETF and FOF. The NFO for this also opens on January 13 and ends on January 27.

Dolores W. Simon