ICICI Prudential Mutual Fund has launched ICICI Prudential Silver ETF, the first passive scheme in India that will be investing in physical silver. The objective is to generate returns that are in line with the performance of physical silver in domestic prices, subject to tracking error. The NFO opens on January 05, 2022, and closes on January 19, 2022.
ICICI Prudential Silver ETF is an open-ended scheme replicating or tracking Domestic Price of Silver. The investment returns will closely track domestic prices of Silver, subject to tracking error. The investment objective of the Scheme to generate returns that are in line with the performance of physical silver in domestic prices as derived from the LBMA AM fixing prices.
The scheme will invest its proceeds in Physical Silver and silver related instruments. Unlike holding Physical Silver, an investor can benefit from investing in Silver ETFs as it provides more liquidity and less storage costs.
Minimum application amount during NFO is Rs. 100 ( plus in multiple of Re. 1) while during ongoing offer period, on stock exchanges, the investors can buy/ sell units of the scheme in round lot of 1 unit and in multiples there of directly with the mutual fund –Authorized Participant(s)/ Investor(s) can buy/ sell units of the scheme in Creation Unit Size viz. 30,000 units and in multiples there of.
Features and uses of Silver as a commodity investment
Silver is a tangible asset. It has a diverse array of applications.
Investor need not worry about purity or quality
Investing in silver is prudent investment during crisis
Act as potential Hedge against inflation
Holding the commodity in form of ETFs provides the investor higher liquidity
Diversifying portfolio with silver can reduce overall portfolio risk
Silver ETF enables investing in silver without storage costs
Majority of silver is consumed and not available for recycling.
Silver is used for Solar panels, medical instruments, switches, satellites etc