Birlaslamc - Silver ETF

About Aditya Birla Sun Life Silver ETF

• The Aditya Birla Sun Life Silver ETF is an exchange-traded fund that aims to provide returns closely corresponding to the returns of silver in the domestic markets.
• The scheme is managed by Aditya Birla Sun Life Mutual Fund House.
• The ETF holds physical silver in the form of bullion bars. The value of the ETF is directly linked to the price of silver, minus any management fees or expenses.
• ABSL Silver ETF was launched on January 31, 2022.
• ABSL Silver ETF hasassets under management (AUM) of ₹256.69 crore as of May 31, 2024.
• Sachin Wankhede is the fund manager since January 31, 2022.
• The ETF is traded on stock exchanges like a stock, which provides liquidity and flexibility to investors.
• One can invest in the scheme by buying the ETF units directly through a demat account.

Investment Objective & Benchmark

• The primary objective of the ABSL Silver ETF is to provide returns that closely correspond to the performance of silver, as represented by the price of physical silver.
• The fund seeks to replicate the performance of silver by investing in physical silver bullion.
• The ETF offers investors a way to gain exposure to the silver market without buying physical silver.
• It provides liquidity and ease of access to investors.
• The Aditya Birla Sun Life Silver ETF allows investors to diversify their portfolios by adding a precious metal, which may behave differently from other asset classes like stocks and bonds.
• Silver is often considered a hedge against inflation and economic uncertainty.
• Since silver is a precious metal, it is used to establish stability for investors in times of market volatility. The metal is used in electric vehicles, chemical products and other industries as well.
• The Aditya Birla Sun Life Silver ETF has a high-risk profile. It is suited for investors looking at a long-term goal of wealth creation goal.

Asset allocation & portfolio composition

• The fund allocation of the ETF consists of 97.70% in silver and 2.30% in cash and cash assets.
• The top holding of ABSL Silver ETF majorly consists of silver around 97.70%.
• Since its inception, the ETF has given an annualised return of 12.52%.
• In a single year, Aditya Birla Sun Life Silver ETF has given a return of 10.91% compared to its benchmark index’s return of 11.59%.