Mutual Fund News : HDFC Mutual Fund Launches HDFC Silver ETF

Publish Date:

HDFC Mutual Fund has Introduced a new scheme – HDFC Silver ETF

It is an open-ended Exchange Traded Fund replicating/tracking performance of Silver

Accordingly, 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. However, there can be no assurance or guarantee that the investment objective of the Scheme will be realized.

Under normal circumstances, HDFC Silver ETF will hold an allocation of 95% to 100% of its assets in Silver and Silver Related Instruments, and 0% to 5% of its assets Debt Securities & Money Market Instruments & units of debt schemes of mutual funds.

As per the Scheme Information Document, the Scheme may invest in Silver and Silver related instruments and intends to track the domestic prices of physical Silver (based on LBMA Silver daily spot fixing price). Investment in Debt securities and money market instruments will be as per the limits in the asset allocation table of the Scheme, subject to permissible limits laid under SEBI (MF) Regulations. Investment in debt securities will be guided by credit quality, liquidity, interest rates and their outlook. Since the scheme is an exchange traded fund, the scheme will only invest in silver & silver related securities constituting the underlying index.

HDFC Silver ETF’s performance will be benchmarked against Domestic Prices of Physical Silver (based on LBMA Silver daily spot fixing price)

The scheme will be managed by Mr. Bhagyesh Kagalkar.

The NFO opens for subscription on August 18, 2022 and closes on August 26, 2022. The scheme will reopen for continuous sale and repurchase Within 5 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 is Rs 500/- and in multiples of Re. 1 thereafter.

Currently the Scheme does not offer any Plans/Options for investment

[Read: HDFC Silver ETF: Is It the Ideal Time to Add Silver to Your Portfolio?]