SBI Mutual Fund has made a bold move by launching the SBI Silver ETF and the SBI Silver ETF Fund of Fund, offering investors an opportunity to diversify their investment portfolios into the silver market.
According to the fund house, silver is not only a precious metal but also widely used in industrial applications, making it a valuable asset with potential growth. The price of silver has been steadily rising over the past few years, as per data from the Association of Mutual Funds of India (AMFI).
The New Fund Offer (NFO) for the SBI Silver ETF runs from June 24 to 27, 2024, with a minimum application amount of Rs. 5,000 per application. Investors can also opt for the SBI Silver ETF Fund of Fund, which invests in units of the SBI Silver ETF, with the NFO running from June 27 to July 5, 2024.
Shamsher Singh, MD & CEO of SBI Funds Management Limited, highlighted the increased demand for metals as an inflation hedge in the global economic scenario. He emphasized the value of silver in industrial applications, making it a versatile investment option.
D P Singh, Deputy MD & Joint CEO of SBI Funds Management Limited, pointed out the potential growth of silver as an industrial metal, especially in electronics and renewable energy sectors. He suggested that investors who currently focus on gold should consider diversifying into silver for long-term growth potential.
Both the SBI Silver ETF and the SBI Silver ETF Fund of Fund will mainly invest in silver or silver-related instruments, with a portion allocated to government securities and liquid mutual funds. The potential returns based on the increase in the domestic price of silver look promising, with a 24.10% surge in one year, according to AMFI data.
