NEW DELHI: Kotak Mahindra Asset Management Company Ltd (KMAMC) on Thursday introduced the launch of an open-ended silver alternate traded fund (ETF). The AMC stated this fund will present buyers a possibility to hedge towards the continued financial uncertainties and geopolitical dangers prevalent throughout a number of main world economies.
The new fund providing (NFO) will open for subscription on 21 November and shut on 5 December, with no masses for buyers.
The goal of the fund is to generate returns according to the efficiency of bodily silver in home costs, topic to monitoring error, however Kotak Mahindra AMC added the caveat that there isn’t any assurance or assure that the funding goal of the scheme shall be achieved.
The fund might even take part in silver associated devices. Exchange Traded Commodity Derivatives (ETCDs) with silver because the underlying shall be thought-about as silver associated instrument for Silver ETFs.
“Investing in Silver ETFs is simpler and safer than shopping for it in its bodily kind, offering simple liquidity and the flexibleness to put money into smaller portions. Furthermore, it presents decrease transaction prices than bodily silver whereas delivering the market equal value of the metallic,” Kotak Mahindra AMC said in its statement.
The units of the fund will be in the form of creation unit size or in multiples thereof and each creation unit consists of 30,000 units of Kotak Silver ETF, as per the company. One unit is approximately equal to 1 gram of silver.
“Our Silver ETF launch is in line with our continued effort to provide easy and efficient access to various asset classes. It will provide convenient access to Silver as an asset which is not only a precious metal but also has many industrial uses. The consolidation in Silver prices since the start of the year provides a good opportunity for those looking to allocate some money to this asset for diversification,” stated Nilesh Shah, Group President and Managing Director, Kotak Mahindra Asset Management Co. Ltd.
The World Silver Survey 2022 reveals that submit the pandemic demand for silver has outstripped provide attributable to uptick in industrial exercise and a surge in retail investor urge for food for the metallic. The 12 months 2021 recorded peak inflows into silver alternate traded merchandise.
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