ICICI Pru Mutual Fund, which recently launched the country’s first Silver ETF, announced Fund of Funds, an open-ended scheme that invests in units of its ICICI Prudential Silver ETF. It is called ICICI Prudential Silver ETF Fund of Funds.
The new fund offer opens on 13 January and closes on 27 January 2022.
The underlying ETF invests in physical silver and silver-related instruments along with silver. It tracks the performance of physical silver derived from LBMA AM fixing prices. The benchmark index for this scheme is the domestic silver price derived from the LBMA prices.
The FoF structure allows non-demat investors to invest in Silver ETFs.
The minimum investment required during NFO is as low as 100. Those who want to reduce their investment can consider investing through the SIP route. According to the press release, apart from investment, silver has wide application in renewable energy, industry and electronics, jewelery etc. Its increasing application in modern eco-friendly manufacturing has led to an increase in the industrial demand for silver as a proportion of the total demand.
Speaking on the launch of the product, Mr. Chintan Hariya, Head – Product Development & Strategy, ICICI Prudential Mutual Fund said, “In India, traditionally, people have been investing in gold and silver in physical format. Since the nature of silver Since they are bulky and therefore difficult to store, we believe that the ETF FOF form will be one of the preferred methods of investors.By investing through Silver ETF FOF, investors can be assured of the purity, quality or liquidity of the underlying asset. and is also free from storage constraints. Given its low correlation with other asset classes, investors can consider investing in silver as a part of their portfolio diversification exercise .
In the riskometer, the product indicates a ‘moderately high’ range.
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