Prudential ICICI launches Silver ETF NFO

Prudential ICICI launches Silver ETF NFO.

After Market regulator Securities and Exchange Board of India (Sebi)'s move to allow the launch of silver exchange-traded funds (ETFs), Prudential ICICI Mutual Fund launches Silver ETF.

This Product is suitable for investors who are seeking investment returns that closely track domestic prices of Silver, subject to tracking error. This will act as diversification of investment portfolio, among other asset classes.

Silver ETF India

NFO Details: 

Issue open: Jan 5-19.

Benchmark: The Scheme shall be benchmarked against the price of Silver (based on LBMA Silver daily spot fixing price).

The minimum investment is Rs.100.

The ETF will list in NSE and BSE.

Gold ETFs offered by domestic MFs had average asset under management (AUM) of Rs 16,500 crore.

Globally, there are at least four silver ETFs with AUM of more than $1 billion. iShares Silver Trust, the world’s biggest silver ETF, has an AUM of over $12 billion.

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Industry participants believe silver ETFs have the potential to become as popular as gold ETFs given their appeal among local investors.

Several investors prefer ETFs over buying physical silver as they don’t have to worry about purity and storage, which is managed by the professional vault managers.