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ICICI Pru Mutual Fund, which recently launched the country’s first silver ETF, announced a Fund of Fund, an open-ended scheme that invests in units of its ICICI Prudential Silver ETF. It is called ICICI Prudential Silver ETF Fund of Fund.
The new fund offer opens on January 13 and closes on January 27, 2022.
The underlying ETF invests in physical silver and silver related instruments with Silver. It tracks the performance of physical silver as derived from the LBMA AM fixing prices. The benchmark index for the scheme is the domestic price of silver as derived from the LBMA prices.
The FOF structure allows non-Demat investors to take exposure to Silver ETF.
The minimum investment required during NFO is as low as ₹100. Those looking to stagger their investment can consider investing through the SIP route. As per the press release, apart from investment, silver has extensive application across renewable energy, industrials and electronics, jewellery etc. The industrial demand for silver as a proportion of total demand has increased due to its increasing application in modern environmental-friendly manufacturing
Speaking on the launch of the product, Mr. Chintan Haria, Head – Product Development & Strategy, ICICI Prudential Mutual Fund said, “In India, traditionally, people have been investing in gold and silver in the physical format. Since silver is bulky in nature and hence difficult to store, we believe the ETF FOF form will be one of the preferred ways for investors. By investing through silver ETF FOF, investors need not worry about purity, quality or liquidity of the underlying asset and is also free from storage-related hassles. Given its low correlation with other asset classes, investors can consider taking exposure to silver as a part of their portfolio diversification exercise”
In the riskometer, the product points to the ‘moderately high’ category.
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