The Business Bytes
TBB BUREAU
MUMBAI, JANUARY 5, 2022
Nippon India Mutual Fund (NIMF) on Wednesday announced the launch of Nippon India Silver ETF, investing in physical silver and silver-related instruments.
It also announced the launch of Nippon India Silver ETF Fund of Fund (FOF) which will invest in units of Nippon India Silver ETF.
“With the First Silver FoF in the Industry, investors can participate without the need to have a demat account and can also opt for systematic investment plans (SIPs),” Nippon Life India Asset Management Limited (NAM India) said.
The NFO for both schemes will open on 13th January 2022 and close on 27th January 2022.
For Nippon India Silver ETF, the minimum investment amount required during (NFO) is Rs 1,000 and in multiples of Re. 1 thereafter; whereas, for Nippon India Silver ETF Fund of Fund (FOF), the minimum investment amount required during NFO is Rs.100 and in multiples of Re. 1 thereafter.
With Nippon India Silver ETF Fund of Fund (FOF), investors can participate without the need to have a Demat account and can also opt for Systematic Investment Plans (SIPs).
Speaking at the launch, Hemen Bhatia, Head ETF, Nippon India Mutual Fund said, “As a pioneer in the Gold ETF and Gold FOF, we are happy to offer an additional building block to investors within the commodity space, with the launch of Nippon India Silver ETF and Nippon India Silver ETF Fund of Fund (FOF). Historically, Silver has a relatively low correlation to Indian Equity Indices and hence, it will provide an opportunity to investors to diversify their portfolio as part of their asset allocation.
Further, investing through Nippon India Silver ETF or Nippon India Silver ETF Fund of Fund (FOF) will provide benefit of hassle free storage, investing in small denominations, no fear of theft, easy liquidity as against holding physical silver and no worries about purity of silver.”
The ETF would invest in physical Silver and Silver related instruments and the performance of the scheme shall be benchmarked against the Domestic price of silver (based on LBMA Silver daily spot fixing price). Physical silver will be of 99.9 per cent purity (999 parts per thousand) conforming to London Bullion Market Association (LBMA) Good Delivery Standards.
Nippon India Mutual Fund (NIMF) is one of the largest ETF players in India with an AUM of more than Rs. 500 billion as on November 30, 2021.
