HDFC Mutual Fund launches HDFC Silver ETF; 5 things to know from NFO period to fund’s objective

HDFC Asset Management Company has launch HDFC Silver ETF in a bid to expand its suite of HDFC Mutual Fund (MF) Index Solutions, the company said in its media release on Thursday. The New Fund Offer (NFO) opened on 18 August and will close on 26 August 2022.

HDFC Silver ETF is an open-ended Exchange Traded Fund (ETF) replicating/tracking performance of Silver, the release said.

“HDFC AMC has always maintained an investor-first approach offering our clients with the most effective solutions while launching products. This Fund will provide investors an opportunity to enhance portfolio diversification by investing in a metal with a differentiated risk-return profile,” Navneet Munot, Managing Director and Chief Executive Officer at HDFC Asset Management Co. Ltd said.

HDFC Silver ETF – things to know:

1) The NFO period is between 18 August and 26 August 2022.

2) Objective: The investment objective is to generate returns that are in line with the performance of physical silver in domestic prices, subject to tracking error.

3) Investing in physical silver and storing it could not be as safe and convenient as holding silver in digital form. Silver ETFs offer opportunity to the investors to digitally invest and own silver.

4)  Digital Silver is easily tradable during market hours, and replicates or tracks the performance of silver, and diversifies one’s portfolio at a low cost.

5) It is a precious metal which hedges against currency depreciation since it is globally priced.

Outlook:

Silver has multi-purpose utility in industrial activities such as portable devices, industrial equipment, Electric Vehicles, mobility, energy production andtelecom. Silver demand outlook is robust on account of higher adoption in new age and green technologies.

One must understand that mutual funds are subject to market risks.

“There is no assurance that the investment objective of the Scheme will be realized,” the release warns investors.

The company claims to be managing assets worth Rs 4.15 trillion.

(Disclaimer: The views/suggestions/advises expressed here in this article is solely by investment experts. Zee Business suggests its readers to consult with their investment advisers before making any financial decision.)