ICICI Prudential MF set to launch India’s first silver ETF

India’s second-largest mutual fund home, ICICI Prudential Asset Management Company Ltd, will launch the nation’s first silver exchange-traded fund (ETF), a brand new asset class that was lately launched by the Securities and Exchange Board of India (Sebi).

ICICI Prudential Silver ETF can be the primary scheme in India that can make investments its proceeds in bodily silver and silver-related devices.

Markets regulator in November had issued remaining operational pointers to introduce silver ETFs, increasing the choices obtainable for investing in commodities via exchanges.

As many as eight fund homes had utilized for launching ETFs primarily based on silver with the regulator throughout December. ICICI Prudential MF additionally utilized for a silver ETF fund of fund.

The new fund provide (NFO) of ICICI Prudential Silver ETF will launch on 5 January and can stay open for subscription until 19 January 2022. The minimal utility through the NFO interval can be ₹100 and within the multiples of Re 1, thereafter. The scheme can be managed by Gaurav Chikane.

Commenting on the launch, Chintan Haria, head-product and technique, ICICI Prudential Mutual Fund, stated, “We imagine silver ETF can be one of many most well-liked methods for traders to take publicity to silver as one needn’t fear in regards to the cumbersome nature of silver, purity, high quality or liquidity of the funding. Silver is among the many most well-liked choice globally in the case of investing in treasured metals. This is as a result of silver is taken into account as a retailer of worth, hedge in opposition to inflation and has a really restricted correlation with different asset courses.”

The scheme can be benchmarked in opposition to the home value of silver as derived from the London Bullion Market Association (LBMA) costs and can have a 0 exit load.

Investors ought to observe that the worth of commodity-based ETFs is instantly linked to their corresponding commodity costs, which might adversely have an effect on funding values. For instance, on a one-year foundation, gold ETF is the one asset class on common that has delivered a damaging return.

ICICI Prudential AMC is the second-biggest fund home in India with common belongings below administration (AAUM) of ₹4.47 lakh crore for the July-September 2021 quarter. SBI Mutual Fund is the largest fund home with an AAUM of ₹5.78 lakh crore.

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