ICICI Prudential Silver ETF is an open-ended scheme that will track the Domestic Price of Silver.
| Good to know
What is a Silver ETF? A Silver ETF (Exchange-Traded Fund) is a fund that primarily invests in hard silver assets which are held by the custodian or the fund manager. It does so by actually holding the stocks or commodities it is tracking; in this case, physical silver. Although silver in physical form has been freely available to Indian investors, this is the first time that a financial instrument tracking silver is being made available. |
Investment objective
The investment objective of the Scheme is to generate returns that are in line with the performance of physical silver in domestic prices. Unlike holding physical silver, an investor can benefit from investing in silver ETFs as it provides more liquidity and less storage cost.
According to a presentation by ICICI Prudential AMC, silver is among the preferred options globally when it comes to investing in precious metals. This is because silver is considered as a store of value, hedge against inflation and has a very limited correlation with other asset classes.
There can be no assurance or guarantee that the investment objective of the plan will be achieved. The Scheme may also participate in Exchange Traded Commodity Derivatives (ETCDs) with silver as underlying.
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Asset allocation
| Instruments | Indicative Allocations
(% of total assets) |
Risk profile
(High/Medium/Low) |
|
| Maximum | Minimum | ||
| Silver and Silver related instruments with Silver as Underlying# (Refer note below) | 100 | 95 | Medium |
| Debt & Money Market Instruments including units of Debt oriented Mutual Funds* | 5 | 0 | Low to medium |
#The Scheme may also participate in Exchange Traded Commodity Derivatives (ETCDs) with Silver as underlying to the extent of 10% of net asset value of the scheme. However, the above limit of 10% shall not be applicable to Silver ETFs where the intention is to take delivery of the physical silver and not to roll over its position to the next contract cycle.
*It may be noted that the margin placed for taking exposure to ETCDs are generally lower than the ETCD exposure limit considered for the purposes of monitoring investment limits and therefore, the residual cash (i.e. ETCD exposure less placement of margin towards participation in ETCDs) are placed in cash and cash equivalents in the interest of investors.
Scheme details
| Name | ICICI Prudential Silver ETF |
| Type | An open-ended scheme replicating the domestic Price of Silver. |
| Category | ETF |
| Benchmark | Domestic price of silver as derived from the LBMA prices |
| Entry/exit load | Entry load: NA
Exit load: Nil |
| Fund Manager | Mr. Gaurav Chikane |
| Minimum application amount | ₹100 and in multiples of ₹1 thereafter |
| Expense ratio | Up to 1.00% |
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| This product is suitable for investors who are seeking*: | Riskometer |
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*Investors should consult their financial advisors if in doubt about whether the product is suitable for them.
Note: The above information has been sourced from the Scheme Information Document provided by ICICI Prudential Mutual Fund. To read the entire document, click here.
Disclaimer: The above article is purely academic in nature and aims to provide knowledge about basic trading concepts & should not be construed as an opinion or advice to invest or trade. RKSV Securities India Private Limited (brand name Upstox) is the distributor of the mutual fund. Mutual fund investments are subject to market risks; please read all the related documents and/or consult your investment advisor before investing. Past performance of an investment asset does not guarantee future returns.
Mutual fund investments are subject to market risks, read all scheme related documents carefully.
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