return to news
  1. Upstox
    /
  2. News
    /
  3. Personal Finance News
    /
  4. Mutual Funds
    /
  5. SBI Mutual Fund introduces SBI Silver ETF and Fund of Fund, offering a new avenue to capitalise on the precious metal

Personal Finance News

SBI Mutual Fund introduces SBI Silver ETF and Fund of Fund, offering a new avenue to capitalise on the precious metal

Upstox
By Upstox News Desk

4 min read | Updated on June 25, 2024, 16:37 IST

Twitter Page
Linkedin Page
Whatsapp Page

SUMMARY

SBI Mutual Fund launched the SBI Silver ETF on June 24, 2024. This open-ended fund tracks domestic silver prices, offering a minimum investment of ₹5,000. Investors can benefit from silver's industrial and precious metal value, enhancing portfolio diversification. The new fund offers liquidity and low-cost investment opportunities.

SBI Mutual Fund introduces SBI Silver ETF and Fund of Fund, offering a new avenue to capitalise on the precious metal

SBI Mutual Fund introduces SBI Silver ETF and Fund of Fund, offering a new avenue to capitalise on the precious metal

SBI Silver ETF is a new investment option launched by SBI Mutual Fund on June 24, 2024. It's an open-ended fund that tracks the price of silver in India, aiming to reflect how the price of physical silver goes up and down. There's no guarantee you will make money, but the idea is that the ETF's value will move in line with silver. The minimum investment is ₹5,000 and the offer closes on June 27, 2024. This is just like any other investment, so be sure to do your research before you invest.

On June 21, 2024, SBI Mutual Fund, India’s largest fund house, announces the launch of SBI Silver ETF (an open-ended exchange traded scheme tracking the price of silver) and SBI Silver ETF Fund of Fund (an open-ended fund of fund scheme investing in SBI Silver ETF).

Shamsher Singh, MD & CEO, SBI Funds Management Limited said: “In today’s global economic scenario, there is an increased demand for metals which act as an inflation hedge. Unlike its better-known counterpart Gold, Silver finds a lot of use in industrial applications and this flexibility helps increase its value in the long term. Hence, investors looking to diversify into commodities can choose to invest through the Silver ETF or Fund of Fund offering and have the opportunity to be a part of its long-term growth prospects.”

SBI Silver ETF

The investment objective of SBI Silver ETF is to generate returns that are in line with the performance of physical silver in domestic prices, subject to tracking error. The investment objective of the SBI Silver ETF Fund of Fund is to seek to provide returns that closely correspond to returns provided by SBI Silver ETF. However, there is no guarantee or assurance that the investment objective of the scheme(s) will be achieved.

Benchmark

The performance of the SBI Silver ETF will be benchmarked to the performance of the price of Silver.

Risk-o-meter:

unnamed_9.webp

Funds Allocation

Types of InstrumentsRisk ProfileMinimum AllocationMaximum Allocation
Securities included in the Nifty EV and New Age Automotive IndexVery High95%100%
Money market instruments including Tri Party REPO/ debt securities, Instruments and/or units of debt/liquid schemes of domestic Mutual FundsLow0%5%

Who Should Invest?

This NFO of SBI Silver ETF is suitable for investors who are seeking long-term Term Wealth Creation and investment returns that track domestic prices of Silver, subject to tracking error.

Peer Mutual Fund Schemes

Scheme NameLaunch DateAUM (Crore)TER (%)1 Year Returns (%)Since Launch Returns (%)
Nippon India Silver ETF05-02-20222,731.830.5127.2416.86
ICICI Prudential Silver ETF21-01-20222,644.070.427.4414.83
Kotak Silver ETF12-12-2022538.90.4527.3319
ABSL Silver ETF28-01-2022382.710.3526.6217.36
HDFC Silver ETF02-09-2022195.970.426.2133.53
DSP Silver ETF19-08-2022150.980.527.2828.27
Axis Silver ETF20-09-2022113.830.3527.7631.53
Data as of June 21, 2024.

Who Manages the Scheme?

Vandna Soni, aged 37, has been managing the scheme since its inception. With an MBA, she joined SBIFML in December 2021 as an Equity Research Analyst. Her role involves tracking commodities and related sectors, including Cement, Metal, Oil, and Gas. She brings a decade of experience in financial services to her current position.

Conclusion

SBI Silver ETF and Fund of Fund provide investors with a strategic opportunity to diversify into silver, leveraging its industrial and precious metal value. With expert management and a focus on long-term growth, these funds offer a promising addition to investment portfolios amid evolving economic conditions.

Upstox

About The Author

Upstox
Upstox News Desk is a team of journalists who passionately cover stock markets, economy, commodities, latest business trends, and personal finance.

Next Story