Kolkata: Experts are bullish on silver prices. Prices of this white precious metal is going up on persistent demand from both traditional users and investors but the most prominent pull is from the industrial sector. The industrial sectors where silver is witnessing high demand is manufacture of solar panels, high-performance electronics, auto, pharma etc nd despite rising demand, supply of the metal is limited. Against this backdrop, DSP mutual fund is launching an NFO of DSP Silver ETF Fund of Fund.
Exchange Traded Funds, popularly referred to as ETFs, are a type of mutual funds/scheme. These track an index, sector, commodities or an asset. However, an ETF can be bought or sold in a stock exchange like any equity share. Therefore, ETFs combine features of stocks or bonds and mutual funds. One can trade in ETFs throughout the day at real time prices. Therefore, two things are required for investing in this ETF/fund of funds — one, a trading account with a broker/ sub-broker and a Demat account for holding the ETF units.
ETF NFO open till May 9, 2025
The ETF opened on April 28 and will remain open till May 9, 2025. The minimum amount to begin an SIP in DSP Silver ETF Fund of Fund is Rs 100. The minimum one-time investment is of the same amount. Significantly, this fund does not have any lock-in period. Tax on gains will be according to the income tax bracket of the investor.
Anil Ghelani will manage the DSP Silver ETF Fund of Fund.
Some of the features of DSP Silver ETF Fund of Fund are: simplicity, low cost, transparency, real time trading and seamless trading. ETFs enable investors to exploit intraday movements in the market for gains, which is not possible with open-ended mutual funds. The holdings of the fund are published every day, and therefore, these are high on transparency.
Outlook of silver bright
Experts point out a few strong clear benefits of investing in silver. These are considered hedge against inflation like gold. Silver is also a robust diversifier in times of volatility. DSP management has also mentioned that silver has delivered returns of about 12% on a five-year rolling basis.
Incidentally, a Fund of Funds invests in a portfolio of other investment funds. It does not directly invest in securities like stocks or bonds. Therefore, it can be regarded as a mutual fund putting its money in other mutual funds. The result: a diversified portfolio of portfolios.
(Disclaimer: This article is only meant to provide information. News9 does not recommend buying or selling shares or subscriptions of any IPO, Mutual Funds, precious metals, commodity, any form of alternative investment instruments and crypto assets.)
Silver ETF (Exchange Traded Fund) is a modern, convenient way of investing in an instrument that tracks the price of metallic silver. There are as many as 17 Silver ETFs in India. Personal Finance Business News – Personal Finance News, Share Market News, BSE/NSE News, Stock Exchange News Today
