Edelweiss Mutual Fund announced the launch of the Edelweiss Silver ETF. The scheme opened for public subscription on November 16, 2023, and will close on November 20, 2023. The scheme re-opens for continuous sale and repurchase not later than November 24, 2023.
What kind of mutual fund scheme is this?
This is an open-ended exchange-traded fund replicating/tracking the domestic prices of silver.
What is the main objective of investing in this fund?
The scheme aims to achieve returns consistent with the performance of domestic silver prices while accounting for tracking error. It’s important to note that there is no guarantee that the scheme will meet its investment objective, and it does not provide assurances or guarantees regarding returns.
How may one invest in this scheme?
Investors can invest under the scheme with a minimum investment of ₹5000 per plan/option and in multiples of Re 1. There is no upper limit for investment.
Under normal circumstances, the asset allocation of the scheme will be as follows:
Instruments |
Indicative allocations (% of total assets) |
Risk Profile |
Silver & silver related instruments |
95% to 100% |
Moderate Risk to High Risk |
Debt and Money Market Instruments |
0% to 5% |
Low Risk to Moderate Risk |
Are there similar mutual funds in the market?
To date, many asset management companies (AMCs) have launched such silver exchange-traded funds, thus, allowing inclined investors to avail of returns corresponding to the total returns of the securities in this particular index. These include:
Name of the fund house |
Name of the fund |
Aditya Birla Mutual Fund |
Aditya Birla Sun Life Silver ETF |
Nippon India Mutual Fund |
Nippon India Silver ETF |
HDFC Mutual Fund |
HDFC Silver ETF |
Axis Mutual Fund |
Axis Silver ETF |
ICICI Prudential Mutual Fund |
ICICI Prudential Silver ETF |
Kotak Mahindra Mutual Fund |
Kotak Silver ETF |
DSP Mutual Fund |
DSP Silver ETF |
UTI Mutual Fund |
UTI Silver ETF |
Source: MoneyControl |
How will the scheme benchmark its performance?
The performance of the scheme will be benchmarked against the domestic price of silver (based on LBMA silver daily spot fixing price).
The AMC/Trustee reserves the right to change the benchmark for evaluation of the performance of the scheme from time to time, subject to SEBI Regulations and other prevailing guidelines if any.
Are there any entry or exit loads to this scheme?
This scheme involves no “Entry Load”, which means that investors do not have to pay anything to park their earnings in this scheme. The “Exit Load” would be charged as under
For creation unit size: No “Exit Load” will be levied on redemptions made by market makers / large investors directly with the fund in creation unit size.
For other than creation unit size: Nil
Who will manage this scheme?
Ashish Sood would be looking after investments in this scheme.
Does the fund contain any inherent risk?
The scheme involves “High Risk” as per the details mentioned in the Scheme Information Document and is best suited to investors willing to understand that their principal will be subject to high risk only. However, investors should consult their financial advisors if they doubt whether the product is suitable for them.
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Updated: 16 Nov 2023, 04:19 PM IST