Kotak Mahindra AMC - Kotak Silver ETF

About Kotak Silver ETF

• The Kotak Silver ETF is an open-ended exchange-traded fund designed to mirror or track the price of silver.
• Offered by the Kotak Mutual Fund House, the ETF was launched on December 9, 2022.
• This exchange-traded fund is traded under the symbol SILVER1 on the National Stock Exchange.
• The assets under management (AUM) of the Kotak Silver ETF stood at ₹518 crore as of June 30, 2024.
• The compound annual growth rate (CAGR) of the Kotak Silver ETF since inception (December 9, 2022) is 13.25%.
• Jeetu Valechha Sonar and Abhishek Bisen have been managing the Kotak Silver ETF since September 12, 2022, and December 9, 2022, respectively.
• Retail investors can buy the ETF units directly using their demat account.

Investment Objective & Benchmark

• The Kotak Silver ETF’s investment objective is to generate returns aligned with the performance of physical silver in domestic prices.
• The performance of the fund is benchmarked against the domestic price of silver, which is based on the London Bullion Market Association (LBMA) daily spot fixing price.
• With its high purity standards and representation of silver’s market value, the ETF offers investors a chance to increase their exposure to the metal.
• It offers investors a means to invest in physical silver of 99.9% purity (fineness).
• The scheme may also invest in silver-related instruments, including exchange-traded commodity derivatives (ETCDs) with silver as the underlying asset.
• This product is suited for investors aiming to achieve returns that align with the long-term performance of silver.
• The risk category for the Kotak Silver ETF is classified as high.
• For the Kotak Silver ETF, an investment horizon of five years or longer is ideal to reduce short-term volatility and align better with the long-term performance of silver.

Asset Allocation & Portfolio Composition

• The scheme allocates a minimum of 95% to a maximum of 100% of its assets in silver and instruments with silver as the underlyingI.
• It allocates up to 5% of its assets in debt and money market instruments, including units of debt-oriented mutual funds.
• The sector allocation of the Kotak Silver ETF includes 97.48% in silver and 2.48% in net current assets.
• The CAGR for the Kotak Silver ETF has been 9.99% over the last year, as of July 30, 2024.
• Comparatively, the domestic price of silver, based on LBMA silver daily spot fixing price, has increased by 12.21% since December 9, 2022, and 10.75% over the past year.