ICICI Prudential Silver ETF

 

ICICI Pru Mutual Fund Launches

India’s First Silver ETF

SEBI allowed mutual fund companies to invest in silver ETFs.

ICICI Prudential Mutual Fund has come up with a silver ETF. 

Silver ETF

 

As Nifty 50 ETF tracks the Nifty 50 index. Similarly, silver ETF tracks the price of silver by actually holding the commodity in its physical form. The benchmark of silver ETFs is the price of silver-based on LBMA (London Bullion Market Association).

A silver ETF invests in physical silver on behalf of its investors.

Key Features

Scheme Name= ICICI Prudential Silver ETF

NFO Period=05-012022 to 19-01-2022

Type of Scheme= An open-ended scheme tracking domestic prices of silver

Minimum Application Amount=During NFO: Rs.100 and in multiples of Rs.1

                                                       During on going period: On the stock exchange, the investors can                                                           buy and sell units of the scheme in a round lot of 1unit and in                                                                   multiples thereof directly with the mutual fund Authorised                                                                       participants/ Investors can buy or sell units of the scheme in creation                                                        unit size viz. 30,000 units and in multiples thereof.                              

Exit Load=Nil

Benchmark=Domestic price of silver as derived from LBMA prices

Features

Silver is used for solar panels, medical instruments, satellites, switches etc.

Investors need not worry about purity.

The majority of silver is consumed and not available for recycling.

It enables investing in silver without storage costs.

Conclusion

Silver has beaten inflation only by a small margin in long run. It may not provide diversification to your portfolio. So allocate a small portion in your investment, if you are looking to invest in a silver ETF to take benefit from the rally in prices.