As a hedge against inflation, metals are in higher demand in the current state of the world economy. Silver is much more useful in industrial applications than its more well-known sibling Gold, and this adaptability contributes to Silver's eventual rise in value. Therefore, investors who desire to diversify into products can read this blog and understand if they decide to invest through the Fund of Funds offering or Silver ETF or not, and they will be able to participate in its long-term growth potential if they go for it.
This article will describe what is included in the fund program and how it works.
SBI Silver ETF Fund of Fund – NFO Overview
SBI Silver ETF Fund of Fund by SBI Funds Management Limited is an open-ended fund of fund scheme investing in SBI Silver ETF. The scheme has a very high risk. The lowest investment required to join is Rs.5000 for investors and in multiples of Rs.1 thereof. The scheme is suitable for such investors who are seeking long-term capital growth and to get engaged in SBI Silver ETF investment. The scheme has a 1% exit load if redeemed within 15 days.
The investment period for the Scheme is set for June 27, 2024, to July 5, 2024. While SBI Silver ETF Fund of Fund would principally invest a minimum of 95% and a maximum of 100% of its assets in units of SBI Silver ETF, the other 5% would be invested in government securities, such as G-Secs, SDLs, Treasury bills, and any other similar instruments that the RBI may from time to time specify. Liquid mutual fund units and tri party repo units are also acceptable investments.
