. The NFO is open and will close on August 26.
According to the press release, the investment objective is to generate returns that are in line with the performance of physical silver in domestic prices, subject to tracking error. Investing in physical silver and storing it in a safe manner could be difficult for an individual, hence HDFC’s Silver ETF NFO gives an opportunity to the investors to digitally invest and own silver which is easily tradable during market hours, replicates/tracks the performance of silver, and diversifies one’s portfolio at a low cost.
Navneet Munot, Managing Director and Chief Executive Officer, HDFC Asset Management 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.”
The fund house says that investing in silver can be beneficial due to its multi-purpose utility in industrial activities such as portable devices, industrial equipment, Electric Vehicles, mobility, energy production and telecom. Silver demand outlook is robust on account of higher adoption in new age and green technologies. Along with the above, it is also a precious metal which hedges against currency depreciation since it is globally priced.