Publish Date:
Axis Mutual Fund has Introduced two new schemes – Axis Silver ETF and Axis Silver Fund of Fund
Axis Silver ETF is an open-ended scheme replicating/tracking domestic price of Silver.
Axis Silver Fund of Fund is an open-ended Fund of Fund scheme investing in Axis Silver ETF.
Accordingly, the investment objective of both the schemes is to generate returns that are in line with the performance of physical silver in domestic prices, subject to tracking error. Axis Silver Fund of Fund scheme tracks returns generated by Axis Silver ETF.
However, there is no assurance or guarantee that the investment objective of the schemes will be achieved.
Under normal circumstances, Axis Silver ETF scheme will hold an allocation of 95% to 100% of its assets in Silver & Silver related instruments, Whereas Axis Silver Fund of Fund scheme will hold an allocation of 95% to 100% of its assets in Units of Axis Silver ETF. Both the schemes will hold an allocation of 0% to 5% of its assets in Debt & Money market instruments.
As per the Scheme Information Document, the schemes endeavours to generate returns that are in line with the performance of Silver, subject to Tracking Errors (as explained below). Axis Silver Fund of Fund follows a passive investment strategy and will invest in Axis Silver ETF. These schemes are not actively managed and no attempt will be made to buy or sell Silver to protect against or to take advantage of fluctuations in the price of Silver.
Silver will include physical silver and other silver related instruments, which may be permitted by Regulator from time to time. The Scheme may also participate in ETCDs, with Silver as underlying to the extent permitted by the Regulations. The permitted limit shall not be applicable to Silver ETFs where the use of ETCD’s, having silver as underlying, will be with the intention to take delivery of the physical silver and not to roll over its position to next contract cycle.
The AMC does not make any judgments about the investment merit of Silver or particular security nor will it attempt to apply any economic, financial or market analysis. The Scheme shall invest all of its funds in physical Silver and Silver related instruments, except to meet its liquidity requirements.
Axis Silver ETF and Axis Silver Fund of Fund’s performance will be benchmarked against Domestic Price of Silver (based on LBMA Silver daily spot AM fixing price).
Axis Silver ETF will be managed by Mr Pratik Tibrewal and Axis Silver Fund of Fund will be managed by Mr Aditya Pagaria.
The NFO opens for subscription on September 02, 2022 and closes on September 15, 2022. The scheme will reopen for continuous sale and repurchase within five Business Days from the date of allotment.
The fund’s NAV is priced at Rs 10/- per unit during the NFO period. The minimum subscription amount for Axis Silver ETF is Rs 500/- and for Axis Silver Fund of Fund is Rs 5,000/- and in multiples of Re. 1 thereafter.
Currently, there are no plans/options under Axis Silver ETF. The Axis Silver Fund of Fund scheme offers Regular Plan and Direct Plan each plan offers Growth and Income Distribution cum capital withdrawal option (IDCW) option.
[Read: Axis Silver ETF and Fund of Fund: Should You Invest in Silver?]