NFO Alert: Edelweiss Mutual Fund launches Edelweiss Silver ETF. Details here

What kind of mutual fund scheme is this?

This is an open-ended exchange-traded fund replicating/tracking the domestic prices of silver.

What is the main objective of investing in this fund?

The scheme aims to achieve returns consistent with the performance of domestic silver prices while accounting for tracking error. It’s important to note that there is no guarantee that the scheme will meet its investment objective, and it does not provide assurances or guarantees regarding returns.

How may one invest in this scheme?

Investors can invest under the scheme with a minimum investment of ₹5000 per plan/option and in multiples of Re 1. There is no upper limit for investment.

Under normal circumstances, the asset allocation of the scheme will be as follows:

Are there similar mutual funds in the market?

To date, many asset management companies (AMCs) have launched such silver exchange-traded funds, thus, allowing inclined investors to avail of returns corresponding to the total returns of the securities in this particular index. These include:

How will the scheme benchmark its performance?

The performance of the scheme will be benchmarked against the domestic price of silver (based on LBMA silver daily spot fixing price).

The AMC/Trustee reserves the right to change the benchmark for evaluation of the performance of the scheme from time to time, subject to SEBI Regulations and other prevailing guidelines if any.

Are there any entry or exit loads to this scheme?

This scheme involves no “Entry Load”, which means that investors do not have to pay anything to park their earnings in this scheme. The “Exit Load” would be charged as under

For creation unit size: No “Exit Load” will be levied on redemptions made by market makers / large investors directly with the fund in creation unit size.

For other than creation unit size: Nil

Who will manage this scheme?

Ashish Sood would be looking after investments in this scheme.

Does the fund contain any inherent risk?

The scheme involves “High Risk” as per the details mentioned in the Scheme Information Document and is best suited to investors willing to understand that their principal will be subject to high risk only. However, investors should consult their financial advisors if they doubt whether the product is suitable for them.

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Updated: 16 Nov 2023, 04:19 PM IST