HDFC AMC launches HDFC Silver ETF Fund of Fund; offer closes on 21 October

New Fund Offer (NFO) of HDFC Silver ETF Fund is ongoing and will close on 21 October. The issue opened on 7 October. HDFC Silver ETF FOF is an open-ended Fund-of-Fund scheme which will invest in HDFC Silver ETF, HDFC Asset Management Company Ltd (HDFC AMC) said in a media release.

The NFO is open for all classes of investors since it does not require a demat account.   

Smart investment options like SIP, STP are available and the fund offers ease of investing in small amounts and is very cost effective, the media release said.

The investment objective is to seek capital appreciation by investing in units of HDFC Silver ETF.

Investing in physical silver and storing it in a safe manner could be difficult for an individual, hence HDFC’s Silver ETF FOF NFO gives an opportunity to the investors to get exposure to silver through mutual fund, thereby eliminating the need to store silver physically.

“The HDFC Silver ETF FOF will provide investors the opportunity to invest in silver which serves dual utilities of being a precious metal and an industrial commodity,” Navneet Munot, Managing Director and Chief Executive Officer, HDFC Asset Management Co Ltd said.

The Fund encourages investors to get exposure to silver due to its multi-purpose utility.It provides an opportunity to leverage on the greater adoption of Silver for new age technologies – solar power, electric vehicles, and to industrial use cases from electrical switches to chemical producing catalysts, while hedging against currency risk.

HDFC AMC is one of India’s leading mutual fund houses and manages assets worth Rs 4.22 trillion as on 30 September 2022.

The company said that the Silver ETF has been launched by the company to expand its suite of HDFC MF Index Solutions.