Monday, June 27, 2022
Home Business Finance Kotak Mahindra Mutual Fund files for silver ETF and FoF with Sebi

Kotak Mahindra Mutual Fund files for silver ETF and FoF with Sebi

Asset management company, Kotak Mahindra Mutual Fund, has filed for two new schemes with the Securities and Exchange Board of India (Sebi) — Silver Exchange-Traded Fund (ETF) and Silver ETF Fund of Fund (FoF).

The objective of the schemes would be to generate returns that are in line with the performance of physical silver in domestic prices, subject to tracking error.

Kotak Silver ETF Fund of Fund would generate returns by investing in units of Kotak Silver ETF.

The minimum amount for application in the new fund offer (NFO) of the scheme would be 5,000, and in the multiples of Re. 1 thereafter.

The benchmarks of the schemes would be price of silver based on the London Bullion Market Association (now known as LBMA) daily spot-fixing price.

According to experts, silver is more a tactical allocation as opposed to gold, which is more a strategic allocation for portfolio diversification. Further, 65-70% of the usage of silver is in industrial applications

Silver ETFs are one of the latest investment asset classes to be introduced by the market regulator.

Sebi in September 2021 had approved an amendment to mutual fund rules to enable the introduction of silver ETFs in the Indian financial markets with certain safeguards in line with the existing regulatory mechanism for gold ETFs.

The first funds on the commodity were introduced in the domestic markets in January 2022.

So far, Aditya Birla Sun Life Mutual Fund, ICICI Prudential Mutual Fund and Nippon India Mutual Fund have launched silver ETFs. Further, each of these fund houses has a silver fund of fund (FoF), which in turn invests in their respective ETFs.

ICICI Prudential Silver ETF is the biggest scheme in the category with assets of around 472 crore, as of 31 May 2022.

The silver fund as a category has delivered an average return of -11.52% on a three-month period.

Subscribe to Mint Newsletters

* Enter a valid email

* Thank you for subscribing to our newsletter.

Source link


GST Council meeting: दरों में बदलाव पर चर्चा संभव, राज्यों को क्षतिपूर्ति टॉप एजेंडा

GST Council meeting: इस सप्ताह चंडीगढ़ में होने वाली जीएसटी परिषद की बैठक (GST Council meeting) में कुछ वस्तुओं की जीएसटी दरों में...

Thanks to Support using this Blog site.

Most Popular

SBI PO Result 2022 Prelims Merit list, Score Card Download

SBI PO Results 2022 Prelims Merit list, Scorecard download will be discussed here. Within a month after the test, the State Bank of...

APPSC AE Admit card 2022 Exam Date, Hall Ticket Download

APPSC AE Admit Card 2022 Exam Date will be discussed in our article. Assistant Engineer Exam Hall Ticket release & download link details....

SSC CPO Cut off Marks 2022 SC ST OBC Gen Selection Marks

SSC CPO Cut off marks 2022 SC ST OBC Gen selection marks will be discussed here. In this essay, we will discuss the...

SSC CHSL Exam Date 2022 Schedule Released, Admit Card

SSC CHSL Exam Date 2022 Schedule Released, Admit Card can be checked here. SSC CHSL admit card 2022 can be downloaded from here. Today...

Recent Comments