Motilal Oswal AMC launches Gold and Silver ETF FoF, NFO to open next week

Motilal Oswal Asset Management Company (MOAMC) has announced the launch of Motilal Oswal Gold & Silver ETF FoF with an objective to generate returns by investing in units of Gold ETF and Silver ETF. The New Fund Offer (NFO) will open next week on Monday, 26 September 2022 and close on 7 October 2022.

It will generate returns by investing in the units of the scheme Sleep and Silver ETFs; The daily load will be market driven with an opening (NFO) allocation of 70:30. Subject to quarterly review, the maximum load is capped at 90%. “The initial high allocation to gold is due to its high economic value and being highly liquid. Additionally, it is relatively more stable than silver,” the fund house said in the release. Indicative base total expense ratio of funds: regular – 0.50%, direct – 0.15%. The date of allotment will be 13 October 2022.

“Gold and silver have been the favorite asset of Indian households for centuries. These precious metals were acquired and kept in physical forms. However, we are seeing high inflation around the world. Gold is a hedge against inflation, prevents erosion of wealth and acts as a store of value in such times. Even, the elite of the world turn to precious metals to protect their fortunes, as both the metals never lose their value. Apart from investment, jewelry and silverware, silver has major industrial applications including green technologies,” said Naveen Agarwal, MD & CEO, Motilal Oswal Asset Management Company Limited.

The minimum application amount for Motilal Oswal Gold & Silver ETF FOF is Rs. 500/- and in multiples of Rs. 1/- thereafter. On an ongoing basis, investors can buy/redeem the units of the scheme through the Financial Advisor or by logging on to www.motilaloswalmf.com. Also, the minimum application amount for ETF FOF is 500/- and thereafter in multiples of Rs.

Prateek Oswal, President – Passive Business, Motilal Oswal Asset Management Company Limited said, “With a view to bring in new investment opportunities, Motilal Oswal AMC has launched Gold and Silver ETFs FoF. It offers a huge diversification mix as both gold and silver have less correlation to equities and thus acts as a good diversification. Both metals provide good downside protection and outperform in bear markets. Silver tends to perform better when the market is recovering from a downturn. With this scheme, investors will be able to hedge against market volatility while enjoying portable assets and rising economic values.”

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