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SBI MF is to launch SBI Silver ETF, an open-ended exchange traded scheme tracking the price of silver. The scheme is aimed to generate returns in line with the performance of silver in domestic prices, subject to tracking error. The scheme would primarily invest a minimum of 95% and a maximum of 100% of its assets in silver and /or silver-related instruments and up to 5% in Government securities like G-Secs, SDLs, treasury bills and any other like instruments as specified by the RBI from time to time, including triparty repo and units of liquid mutual funds.
Talking about the rationale for the launch of the fund, Shamsher Singh, MD & CEO, SBI Funds Management said, “In today’s global economic scenario, there is an increased demand of metals which act as an inflation hedge. Unlike its better-known counterpart gold, silver finds a lot of use in industrial applications and this flexibility helps increase its value in the long term. Hence, investors looking to diversify into commodities can choose to invest through SBI Silver ETF and have the opportunity be a part of its long-term growth prospects.”
D P Singh, Deputy MD & Joint CEO, SBI Funds Management said, “Silver is not only a precious metal, it is an industrial metal, and its demand will be linked to the potential rise in sectors like electronics and renewable energy. This improves the long-term growth potential of silver and can benefit investors who invest into commodities but currently don’t look beyond Gold. Investing through an ETF, gives investors a low-cost investment option and the advantage of liquidity.”
The minimum application amount during the NFO period would be Rs. 5,000 per application and in multiples of Re. 1 thereafter. The fund manager for the fund is Vandana Soni.
