Aditya Birla Sun Life Mutual Fund and Nippon India Mutual Fund have launched their silver ETFs and silver ETF Fund of Funds (FOFs)
The FoF structure will enable non-demat account holder to invest in silver ETFs.
ABSL Silver ETF and ABSL Silver ETF FoF will have minimum investment amount of Rs.500 and Rs.100 respectively. For Nippon India Silver ETF, the minimum investment amount required during NFO is Rs. 1000 and in multiples of Re. 1 thereafter; whereas, for Nippon India Silver ETF Fund of Fund (FOF), the minimum investment amount required during NFO is Rs.100 and in multiples of Re. 1 thereafter.
In a note sent to Cafemutual, ABSL MF said that the demand of silver will grow at a higher pace than its supply. Talking about its benefits, the fund house said that growing consumption and investment demand will increase price of silver in future. Further, government push for solar panels, EVs will further push its demand, said the fund house
In a press release, Hemen Bhatia, Head ETF, Nippon India Mutual Fund said, “Historically, silver has a relatively low correlation to Indian equity indices and hence, it will provide an opportunity to investors to diversify their portfolio as part of their asset allocation. Further, investing through ETFs will provide benefit of hassle free storage, investing in small denominations, no fear of theft, easy liquidity as against holding physical silver and no worries about purity of silver.”
