Tata Mutual Fund announced the launch of the Tata Silver Exchange Traded Fund. The scheme opened for public subscription on January 02, 2024, and will close on January 09, 2024. The scheme re-opens for continuous sale and repurchase from January 17, 2024.
Also Read: Tata Mutual Fund launches the Tata Silver ETF Fund of Fund
This is an open-ended exchange-traded fund scheme replicating/tracking the domestic price of silver. This product is suitable for investors seeking
The investment objective of the fund is to generate returns that are in line with the performance of physical silver in domestic prices, subject to tracking error. However, there is no assurance or guarantee that the investment objective of the scheme will be achieved.
Investors can invest under the scheme with a minimum investment of ₹100 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:
| Instruments | Indicative allocations (% of total assets) | Risk Profile | |
Minimum | Maximum | ||
Silver (Includes Physical Silver and other Silver-related instruments as permitted by SEBI from time to time) | 95% | 100% | High |
Debt & Money Market Instruments including units of Mutual Funds | 0% | 5% | Medium |
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 House | Silver ETF |
Nippon India Mutual Fund | Nippon India Silver ETF |
ICICI Prudential Mutual Fund | ICICI Prudential Silver ETF |
Mirae Asset Mutual Fund | Mirae Asset Silver ETF |
| Source: Groww.in (As of January 02, 2024) | |
The performance of the scheme shall be benchmarked to the domestic price of silver. Since there is no suitable index available for silver or instruments linked to silver, the performance of the scheme will be benchmarked against the domestic price of silver.
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 also be “Nil”.
Tapan Patel is the designated fund manager of this scheme.
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.
