Motilal Oswal Asset Management Company (MOAMC) has announced the launch of Motilal Oswal Gold and Silver ETFs FoFs, with an objective to generate returns by investing in units of Gold ETF and Silver ETF.
The NFO will open on 26th September 2022 and closes on 7th October 2022.
The scheme shall generate returns by investing in units of Gold and Silver ETFs; the daily weights shall be market driven with the starting (NFO) allocation of 70:30. The maximum weight is capped at 90%, subject to quarterly review. The initial higher allocation to Gold is on account of it having higher economic value and being highly liquid. Additionally, it is relatively more stable as compared to silver.
Why should you consider adding Gold & Silver in your portfolio?
The two precious metals Gold & Silver have virtually outlasted every civilization known to modern man; No wonder mankind has been fascinated by these metals for ages. These metals have been in existence for more than 6000 yrs and also have been a testament to collapse of various economic system.
Gold is extensive used in jewelry and is often considered as 'safe haven', as it tends to do well during market uncertainty. In contrast silver has wide industrial applications and generally does well during business recovery periods. Exposure to both metals help portfolio do well in both turbulent times and during recovery periods.