Publish Date:
Edelweiss Mutual Fund has Introduced a new scheme – Edelweiss Gold and Silver ETF Fund of Fund
It is an open-ended fund of funds scheme investing in units of Gold ETF and Silver ETF
Accordingly, the investment objective of the scheme is to generate returns by investing in units of Gold ETFs and Silver ETFs. However, the performance of the scheme may differ from that of the underlying gold and silver due to tracking error of the underlying exchange traded funds. There can be no assurance or guarantee that the investment objective of the plan will be achieved.
Under normal circumstances, Edelweiss Gold and Silver ETF Fund of Fund scheme will hold an allocation of 95% to 100% of its assets in Units of Gold and Silver ETFs, of which 35% to 65% in Units of Gold ETFs and 35% to 65% in Units of Silver ETFs and 0% to 5% of its assets in Money Market Instruments, cash and cash equivalent and/or units of Liquid scheme.
As per the Scheme Information Document, based on various macro/technical/fundamental factors the Fund Manager shall decide allocation towards units of Gold ETFs and/or Silver ETFs. The Scheme shall invest in units of Gold and Silver ETFs directly or through secondary market.
A small portion of the net assets will be held as cash or will be invested in debt and money market instruments permitted by SEBI/RBI including TREPS or in alternative investment for the TREPS as may be provided by the RBI, to meet the liquidity requirements under the Scheme.
Edelweiss Gold and Silver ETF Fund of Fund’s performance will be benchmarked against LMBA prices (The London Bullion Market Association).
The scheme will be managed by Mr. Bhavesh Jain and Mr. Bharat Lahoti
The NFO opens for subscription on August 24, 2022 and closes on September 07, 2022. The scheme will reopen for continuous sale and repurchase on September 21, 2022
The fund’s NAV is priced at Rs 10/- per unit during the NFO period. The minimum subscription amount is Rs 5,000/- and in multiples of Re. 1 thereafter.
The scheme offers Regular Plan and Direct Plan each plan offers Growth and Income Distribution cum capital withdrawal option (IDCW) option.
[Read: Edelweiss Gold and Silver ETF Fund of Fund: Should Precious Metals be a Part of Your Portfolio?]