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DSP Mutual Fund has filed the draft scheme information document (SID) with the Securities and Exchange Board of India (Sebi) for DSP Silver ETF-- an open-ended exchange traded fund replicating/tracking domestic prices of the precious metal. 

The scheme will invest in physical silver and silver-related instruments permitted by the regulator from time to time. The physical silver shall be of standard 30 kg bars with fineness of 999 parts per thousand 99.9% purity, confirming to London Bullion Market Association (LBMA) Good Delivery Standards.

Note that Exchange Traded Commodity Derivatives (ETCDs) having silver as the underlying shall be considered as ‘silver related instrument’.

The scheme will use a passive approach and seeks to generate returns that are in line with the performance of physical silver in domestic prices, subject to tracking error. It will be managed by Sahil Kapoor and will be benchmarked against domestic price of physical silver based on LBMA silver daily spot fixing price.

The minimum application amount once the NFO period starts is 5,000 and in multiples of Re 1 thereof. Investors can subscribe (buy) and redeem (sell) units on a continuous basis on the NSE/BSE on which the units will be listed. The units of the scheme can be purchased and sold on the exchange at minimum lot of one unit and in multiples thereof.

The scheme also offers for subscriptions/redemptions directly from the fund only for authorised participants and large investors in “Creation Unit Size" on all business days. Each “Creation Unit" consists of 30,000 Units of DSP Silver ETF.

The AMC shall send monthly/half yearly portfolio via email within 10 days from the end of each month/ half year in case of unit holders whose email addresses are registered with the fund. The monthly/half yearly portfolio of the scheme shall be available in a user-friendly and downloadable spreadsheet format on the AMFI’s website.

The AMC shall provide a physical copy of the statement of the scheme portfolio, without charging any cost, on specific request received from a unitholder.

 

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