NIMF launches Nippon India silver ETF, silver ETF fund of fund

Hyderabad Nippon Life India Asset Management Limited (NAM India) asset manager of Nippon India Mutual Fund (NIMF), has announced the launch of Nippon India Silver ETF, investing in physical silver and silver related instruments and Nippon India Silver ETF Fund of Fund (FOF), which will invest in units of Nippon India Silver ETF. The NFO for both schemes will open on January 13, 2022 and close on January 27, 2022.

For Nippon India Silver ETF, the minimum investment amount required during (NFO) is Rs 1,000 and in multiples of Re 1 thereafter; whereas, for Nippon India Silver ETF Fund of Fund (FOF), the minimum investment amount required during NFO is Rs100 and in multiples of Re 1 thereafter.

With Nippon India Silver ETF Fund of Fund (FOF), investors can participate without the need to have a demat account and can also opt for Systematic Investment Plans (SIPs).

Hemen Bhatia, head ETF, Nippon India Mutual Fund said, "As a pioneer in the Gold ETF and Gold FOF, we are happy to offer an additional building block to investors within the commodity space, with the launch of Nippon India Silver ETF and Nippon India Silver ETF Fund of Fund (FOF). Historically, silver has a relatively low correlation to Indian equity indices and hence, it will provide an opportunity to investors to diversify their portfolio as part of their asset allocation.

Further, investing through Nippon India Silver ETF or Nippon India Silver ETF Fund of Fund (FOF) will provide benefit of hassle free storage. Investing in small denominations, no fear of theft, easy liquidity as against holding physical silver and no worries about purity of silver."

The ETF would invest in physical silver and silver related instruments and the performance of the scheme shall be benchmarked against the domestic price of silver (based on LBMA silver daily spot fixing price). Physical silver will be of 99.9 per cent purity (999 parts per thousand) conforming to London Bullion Market Association (LBMA) Good Delivery Standards.

Nippon India Mutual Fund (NIMF) is the one of the largest ETF players in India with an AUM of more than Rs 500 billion as on November 30, 2021.

Nippon India ETF gold BEES and Nippon India gold savings fund have one of the largest AUM amongst gold ETFs & Gold ETF based FOFs in Indian industry. Nippon India ETF Gold BEES has one of the highest volume amongst gold ETFs in the Indian Industry