Axis Mutual Fund launches Silver ETF and Silver FoF

Axis Mutual Fund has launched the Axis Silver ETF, an open ended scheme replicating domestic price of Silver, and Axis Silver Fund of Fund, an open ended fund of fund scheme investing in units of Axis Silver ETF. Both NFOs are open for subscription till September 15. Both the funds will be benchmarked against the LBMA Silver daily spot AM fixing price.

Pratik Tibrewal, Fund Manager, Commodities, will be managing the Axis Silver ETF and the minimum application amount would be Rs 500 per application and in multiples of INR 1/- thereafter. Aditya Pagaria, Fund Manager, Fixed Income will be managing the Axis Silver FoF and the minimum application amount be Rs 500 and in multiples of Re 1/- per application in the ETF and Rs 5,000 and in multiples of INR 1/- thereafter in the FoF.

The fund house said in a press release that Silver in its physical form may pose challenges with respect to corrosion over time, safety, purity of the metal, liquidity risk etc. Investors can opt to gain exposure to the precious metal via an ETF (Exchange Traded Fund) that aims to generate returns in line with the performance of physical silver in domestic prices, subject to tracing error. Investors who do not have a Demat account can gain exposure by investing in Silver FoF (Fund of Fund).

Chandresh Nigam, MD & CEO, Axis AMC, said, “Silver’s interesting proposition wherein it has the ability to act as an industrial commodity as well as a precious metal is one of the key factors that we believe will drive its significance. Now that investors have access to investing in Silver via ETFs, it will further increase the metal’s value as a promising asset class in the future. With the launch of Axis Silver ETF and Axis Silver FoF, we aim to seamlessly integrate available market opportunities with an investment strategy that allows investors to gain distinctive exposure to the metal. The new scheme’s approach aligns with our philosophy and we believe, will be a notable addition to our portfolio of products.”

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