UTI Silver ETF

About UTI Silver ETF

• The UTI Silver ETF is a financial instrument designed to track the price of silver.
• Offered by the UTI Mutual Fund House, the ETF primarily invests in physical silver. This means it holds silver bullion or silver-related assets.
• The fund invests in industry-standard 30 Kg physical silver bullion of 999 parts per 1,000 fineness.
• UTI Silver ETF was launched on April 17, 2023.
• The asset under management (AUM) stood at ₹89.24 crore as of June 30, 2024
• Niranjan Das is the fund manager of UTI Silver ETF.
• The ETF is traded on NSE and BSE like a stock, which provides liquidity and flexibility for investors.
• It can be bought and sold during market hours at prevailing market prices with individual demat accounts.

Investment Objective & Benchmark

• The primary objective of the UTI 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.
• It is benchmarked by the domestic price of silver.
• The ETF follows a passive investment approach and doesn’t try to beat market trends.
• Investors can 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.
• The ETF generally has a high-risk profile, suited for a long term wealth creation goal.
• Suitable for those who wish to invest in silver without the need for physical storage. It is also ideal for investors looking to diversify their portfolios with precious metals.
• The ETF offers a liquid alternative to physical silver.
• Apart from its use in making jewellery, silver has also has several industrial applications. It is used for making solar panel, smartphone and electric vehicles.

Asset allocation & portfolio composition

• The fund allocation of the UTI Silver ETF consists of 100% in debt.
• The top holding of UTI Silver ETF majorly consists of silver around 97.66%.
• The ETF has posted a return of 27.03% in the last year, as of July 31, 2024 agains its benchmark’s yield of 28.67%.
• Since its inception, the ETF has given an annualised return of 13.05%.