Image courtesy Nippon India Mutual fund
In India, silver prices have crossed Rs 1 lakh per kg! Demand of Silver has doubled from last year.
In addition to its traditional applications, silver is in high demand in industry. Silver is now being used extensively in solar panels for renewable energy, in EVs, in advanced healthcare, electronics and many other technologies. Silver is going to be the new critical mineral of the future.
Nippon India Silver ETF Fund of Fund (FOF), is one of the first domestic silver fund of funds in India which opens a new avenue for investing in silver as an asset class. The fund seeks to provide returns of silver through investments in Nippon India Silver ETF, which in turn invest in physical silver. It enables you to reap the returns of silver in a paper form without the need of a demat account.
It is a passively managed fund which enables an investor to save for silver in a convenient manner either through lump sum investment or through systematic investment.
Benefits of Investing in Nippon India Silver ETF Fund of Fund (FOF)
- • Convenience: The scheme will allow non demat account holders to seek exposure in silver via investing in Nippon India Silver ETF Fund of Fund (FOF).
- • Metal Purity: The scheme invests in the units of Nippon India Silver ETF which will further invest in physical silver bars having 99.9% silver purity.
- • Hassle Free Investment: Investors need not worry about fear of theft as well as storage issues and insurance costs, as physical silver will be stored with SEBI registered custodian.
- • Smaller Denomination Investments: Investors can buy a unit of Silver FOF by investing as low as Rs.100.
- • SIP Investments: Investors can avail the benefit of Systematic Investment Plan (SIP).
- • Asset Allocation: Easy diversification in commodity as an asset class via single unit of Silver FOF through digital medium, to achieve desired asset allocation.
- • Low Correlation: Relative low correlation to Indian indices, may provide opportunity for better risk adjusted returns as part of investors asset allocation.
- • Potential Hedge: Investment in silver acts as an hedge against inflation.
