NFO Alert: Tata Mutual Fund launches the Tata Silver Exchange Traded Fund; all you need to know

livemint.com:

Also Read: Tata Mutual Fund launches the Tata Silver ETF Fund of Fund This is an open-ended exchange-traded fund scheme replicating/tracking the domestic price of silver. This product is suitable for investors seeking The investment objective of the fund is to generate returns that are in line with the performance of physical silver in domestic prices, subject to tracking error.

However, there is no assurance or guarantee that the investment objective of the scheme will be achieved. Investors can invest under the scheme with a minimum investment of ₹100 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:Indicative allocations (% of total assets)MinimumMaximumSilver (Includes Physical Silver and other Silver-related instruments as permitted by SEBI from time to time)95%100%HighDebt & Money Market Instruments including units of Mutual Funds0%5%Medium To date, many asset management companies (AMCs) have launched such silver exchange-traded funds (ETFs), thus, allowing inclined investors to avail of returns corresponding to the total returns of the securities in this particular index.

These include:Mutual Fund HouseSilver ETFNippon India Mutual FundNippon India Silver ETFICICI Prudential Mutual Fund ICICI Prudential Silver ETFMirae Asset Mutual FundMirae Asset Silver ETF The performance of the scheme shall be benchmarked to the domestic price of silver. Since there is no suitable index available for silver or instruments linked to silver, the performance of the scheme will be benchmarked against the domestic price of silver.