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Business News/ Money / Personal Finance/  NFO Alert: Mirae Asset Mutual Fund launches the Silver ETF; all you need to know
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NFO Alert: Mirae Asset Mutual Fund launches the Silver ETF; all you need to know

Mirae Asset Mutual Fund announced the launch of the Mirae Asset Silver ETF. The scheme opened for public subscription on May 29, 2023, and will close on June 06, 2023.

Mirae Asset Mutual Fund announced the launch of the Mirae Asset Silver ETFPremium
Mirae Asset Mutual Fund announced the launch of the Mirae Asset Silver ETF

Mirae Asset Mutual Fund announced the launch of the Mirae Asset Silver ETF, an open-ended scheme replicating/tracking the domestic price of silver.

The scheme opened for public subscription on May 29, 2023, and will close on June 06, 2023. The scheme re-opens for continuous sale and repurchase from June 12, 2023.

Q. What kind of mutual fund scheme is this?

This is an open-ended exchange-traded fund scheme replicating/tracking the domestic price of silver.

Q. What is the main objective of investing in this fund?

The investment objective of the scheme is to generate returns that are in line with the performance of physical silver in domestic prices, subject to tracking error. The scheme does not guarantee or assure any returns.

Q. How may one invest in this scheme?

Investors can invest under the scheme with a minimum investment of Rs 5000 per plan/option and in multiples of Re 1. There is no upper limit for investment.

Under normal circumstances, the asset allocation of the scheme will be as follows:

InstrumentsIndicative Allocations (% of total assets)Risk Profile
MinimumMaximum
Silver95%100%Very High
Money Market Instruments including Tri Party REPO/debt securities, instruments and/or units of debt/liquid schemes of domestic mutual funds0%5%Low to Medium

Q. Are there similar mutual funds in the market?

To date, many asset management companies (AMCs) have launched such silver exchange-traded funds (ETFs), thus, allowing inclined investors to avail of returns corresponding to the total returns of the securities in this particular index. These include:

Mutual Fund HouseSilver ETF
Nippon India Mutual FundNippon India Silver ETF
ICICI Prudential Mutual FundICICI Prudential Silver ETF
Source: MoneyControl

Q. How will the scheme benchmark its performance?

The benchmark for the scheme is the Domestic Price of Physical Silver (based on LBMA Silver daily spot fixing price). The performance comparisons for the scheme will be made vis-à-vis the Benchmark. However, the scheme’s performance may not be strictly comparable with the performance of the Benchmark, due to the inherent differences in the construction of the investment portfolio.

Q. Are there any entry or exit loads to this scheme?

This scheme involves no “Entry Load", which means that investors do not have to pay anything to park their earnings in this scheme. The “Exit Load" would be calculated as under:

For investors transacting directly with the AMC: No Exit load will be levied on redemptions made by Market Makers / Large Investors directly with the AMC.

For investors transacting on the exchange: Not Applicable.

Q. Who will manage this scheme?

Ritesh Patel is the designated fund manager of this scheme.

Q. Does the fund contain any inherent risk?

The scheme involves “Very High Risk" as per the details mentioned in the Scheme Information Document and is best suited to investors willing to understand that their principal will be subject to very high risk only. However, investors should consult their financial advisors if they doubt whether the product is suitable for them.

 

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Published: 29 May 2023, 11:04 AM IST
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