Axis Mutual Fund launches Axis Silver ETF, Axis Silver Fund of Fund; all details here

Asset management company Axis Mutual Fund has launched Axis Silver ETF (exchange traded fund), an open ended scheme replicating/tracking domestic price of silver, and Axis Silver Fund of Fund (FoF), an open ended fund of fund scheme investing in units of Axis Silver ETF. The ETF will be managed by fund manager Pratik Tibrewal. The minimum application amount would be Rs 500 per application, and in multiples of Re 1 thereafter. The FoF will be managed by fund manager Aditya Pagaria, and the minimum application amount will be Rs 5,000, and in multiples of Re 1 thereafter. 

Both the funds will be benchmarked against the LBMA Silver daily spot am fixing price. Both new fund offers (NFOs) will be open for subscription on September 2 and close on September 15. 

The company said, “As a precious metal, silver has always found a place of significance in the Indian culture. However, investing in silver in its physical form may pose challenges with respect to corrosion over time, safety, purity of the metal, liquidity risk etc. Thankfully, investors can opt to gain exposure to the precious metal via an ETF 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.”

Silver is also required in industries such as biopharma and medical technologies, power generation and clean energy, and electric vehicles and mobility technologies. Silver also has the potential to provide a hedge against inflation, the company added. 

All you need to know about the Axis Silver ETF and Axis Silver FoF: 

• Funds will invest in industry standard 30kg physical silver bullion of 999 parts per 1,000 fineness
• The purchase and sale of silver will be done with reputed institutions and bullion traders in order to ensure minimal trading costs and quality
• Ownership will be hasslefree in demat form/MF units
• Axis AMC will take care of storage, transport, and insurance hassles
• Exchange liquidity – Investors can buy and sell ETF units on NSE at their convenience 

Axis Silver ETF:

• Fund Manager: Pratik Tibrewal, Fund Manager, Commodities 
• NFO open date: September 2  
• NFO close date: September 15
• Minimum Application Amount: Rs 500 per application 
• Creation Unit Size: 30,000 units of the ETF and cash component, if any 
• Exit Load: Nil 

Axis Silver Fund of Fund:

• Fund Manager: Aditya Pagaria, Fund Manager, Fixed Income
• NFO open date: September 2
• NFO close date: September 15
• Minimum Application Amount: Rs 5,000 per application 
• Exit Load: 0.25% if redeemed/switched out within 7 days
                  Nil if redeemed/switched out after 7 days

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.”

Also read: Gold, Silver ETFs: Edelweiss Mutual Fund rolls out India’s first gold, silver fund. Details here