HDFC Asset Management Company Ltd has launched HDFC Silver ETF, which is an open-ended Exchange Traded Fund (ETF) tracking the performance of silver. The New Fund Offer (NFO) opened on August 18, 2022, and closes on August 26, 2022.
In a statement, HDFC AMC said the investment objective of this Silver ETF is to generate returns that are in line with the performance of physical silver in domestic prices, subject to tracking error.
“Investing in physical silver and storing it in a safe manner could be difficult for an individual, hence HDFC’s Silver ETF NFO gives an opportunity to the investors to digitally invest and own silver which is easily tradable during market hours, replicates/tracks the performance of silver, and diversifies one’s portfolio at a low cost,” the AMC said.
HDFC Silver ETF aims to encourage consumers to invest in silver due to its multi-purpose utility in industrial activities such as portable devices, industrial equipment, Electric Vehicles, mobility, energy production and telecom.
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According to the statement, the silver demand outlook is robust on account of higher adoption in new age and green technologies. Silver is also a precious metal which hedges against currency depreciation since it is globally priced.
Commenting on the NFO, Navneet Munot, Managing Director and Chief Executive Officer, HDFC AMC said, “This Fund will provide investors an opportunity to enhance portfolio diversification by investing in a metal with a differentiated risk-return profile.”
What should investors do?
The funds invested in this ETF will be at very high risk. There is no assurance that the investment objective of the Scheme will be realized. Mutual fund investments are subject to market risks Therefore investors should consult their financial advisers if in doubt about whether the product is suitable for them.
HDFC AMC is an Investment Manager of HDFC Mutual Fund, which is one of the largest mutual funds in the country, currently managing assets worth Rs 4.15 trillion.