Nippon India MF launches Silver ETF & FOF. Details here

Nippon India Silver ETF will invest in physical silver and silver-related instruments and the performance of the scheme will be benchmarked against the domestic price of silver (based on LBMA silver daily spot-fixing price), while Nippon India Silver ETF FOF will invest in units of Nippon India Silver ETF.

New Fund Offer for both the schemes will open on 13 January 2022 and close on 27 January 2022.

The minimum investment amount for NFO of Nippon India Silver ETF is ₹1,000 and in multiples of Re 1 thereafter, for Nippon India Silver ETF FOF, it is Rs100 and in multiples of Re 1 thereafter.

NAM India in its statement said the physical silver and silver related instruments that the ETF would invest in will be of 99.9 percent purity (999 parts per thousand) conforming to London Bullion Market Association (LBMA) Good Delivery Standards.

The AMC added that with the first silver FoF in the industry, investors can invest in silver ETF without the need to have a Demat account and can also opt for Systematic Investment Plans (SIPs).

The investment objective of Nippon India Silver ETF is to generate returns that are in line with the performance of physical silver in domestic prices, before expenses, subject to tracking errors, NAM India said in its statement, adding that the investment objective of Nippon India Silver ETF FOF is to provide returns that closely correspond to returns provided by Nippon India Silver ETF by investing in units of Nippon India Silver ETF.

“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 Fund of Fund (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.”