Nippon India MF launches Silver ETF & FOF: All you need to know

New fund offers (NFOs) for both schemes will open on January 13 and close on January 27.

For Nippon India Silver ETF, the minimum investment amount required for NFO is Rs 1,000 and in multiples of Re 1 thereafter. Whereas, for the FOF, the minimum investment amount for NFO is Rs 100 and in multiples of Re 1 thereafter.

The ETF would invest in physical silver and silver-related instruments. The performance of the scheme shall be benchmarked against the domestic price of silver (based on LBMA Silver daily spot-fixing price). Physical silver will be of 99.9 per cent purity (999 parts per thousand) conforming to London Bullion Market Association (LBMA) Good Delivery Standards.

The scheme will be the first silver FoF in the industry where investors can participate without a Demat account and can opt for Systematic Investment Plans (SIPs).

ICICI Prudential Mutual Fund has already launched a silver ETF that is open for subscription till January 19.

“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,” said Hemen Bhatia, Head ETF, Nippon India Mutual Fund. “Further, investing through Nippon India

Silver ETF or Nippon India Silver ETF FOF will provide the benefit of hassle-free storage, investing in small denominations, no fear of theft, easy liquidity as against holding physical silver and no worries about the purity of the silver.”

HDFC Mutual Fund, DSP Mutual Fund, and ABSL Mutual Fund have also filed draft documents for new silver ETFs.