ABSL Mutual Fund to launch silver ETF, FOF

Aditya Birla Sun Life Mutual Fund on Wednesday announced the launch of Silver ETF and Silver ETF Fund of Fund (FoF). The new fund offer (NFO) of both the schemes will open on 13 January and close on 27 January.

The minimum investment required during the NFO of Silver ETF is Rs 500; for Silver ETF Fund of Fund, the minimum investment amount required during NFO is Rs 100.

The fund house said its purpose of launching the FoF along with the ETF is that those who don’t have a demat account can also participate in this asset class through the FoF.

The ETF would track physical silver and the performance of the scheme will be benchmarked against the price of silver in rupee.

“We are offering silver in both – ETF and Fund of Fund – formats for investors and partners to participate in their choice of vehicles. Silver is one of the most versatile metal commodities that have strong (household) consumption demand, investment demand and now an ever-increasing industrial demand,” the fund house said.

The asset management company underscored that the outlook for silver is bright due to emerging trends in demand.

“Indians have traditionally been large investors in silver through festive and celebratory demand for coins, figurines, ornaments and silverware. Global demand for EVs, batteries and solar energy will also drive industrial demand for silver. With a large demand-supply mismatch, silver could surprise the market in terms of asset class performances,” said Abhishek Singhal, Head – Passive & Alternative Strategies, Aditya Birla Sun Life Mutual Fund.

Several fund houses have been rushing to launch silver ETFs after Sebi allowed mutual fund houses to introduce silver ETFs in October 2021. In November, SEBI chalked out operating norms for the introduction of silver ETFs, as per which, these ETFs have to invest at least 95% of their net assets in silver and silver-related instruments.

ICICI Prudential Mutual Fund announced the launch of the country’s first silver ETF last week. The NFO of its silver ETF opened for subscription on January 5 and will close on January 19.

Nippon India Mutual Fund (NIMF), on Wednesday, announced the launch of Nippon India Silver ETF and Nippon India Silver ETF Fund of Fund (FoF) which will invest in units of Nippon India Silver ETF. New fund offers of both schemes will open on 13 January and close on 27 January.

Fund houses such as HDFC Mutual Fund and DSP Mutual Fund, too, have filed draft documents for new silver ETFs.

If you are interested to know if you should invest in silver ETFs, you can read this article:Mutual funds ready to launch silver ETFs; are you ready to invest?


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