This Newly Launched Silver ETF FoF Has Given Over 138% Returns Since Its Inception

ICICI Prudential MF became the first fund house to launch a Silver ETF on January 5 this year and also launched a fund of fund scheme. A mutual fund that invests in other mutual fund schemes is known as a fund of funds. Here, we have highlighted this FoF's returns.

ICICI Prudential Silver ETF Fund of Fund - Direct Plan-Growth

This FoF was launched on 13 January 2022 by the ICICI Prudential Asset Management Co. Ltd. It is an open-ended commodity-based silver ETF FoF mutual fund scheme. As of 28 February 2022, the fund of the fund has Rs 171.99 Crores worth of AUM. The fund's current NAV is Rs 11.235 as of 11 March 2022. The fund's current expense ratio is not available as the fund was recently launched by the mutual fund house. The fund's Direct Plan-Growth charges 1.0% of sell value; if the fund is sold before 15 days. There are no other charges. The minimum investment amount required in this fund is Rs 1,00 and the minimum SIP amount is Rs 100. On the risk meter, it is a moderately high-risk FoF.

The investment objective of the Scheme is to generate returns that are in line with the performance of the physical silver in domestic price, subject to tracking error. There can be no assurance or guarantee that the investment of the plan will be achieved. The scheme may also participate in Exchange Trader Commodities Derivatives with silver as underlying.

 

Returns

Tenure	Absolute Returns	Annualised Returns
1 Week	2.49%	-
1 Month	10.79%	-
Since Inception	12.35%	138.08%

Why Should You Invest In Silver ETF FoF?

Investors in India have been buying physical silver, but the problem is that silver is hefty by nature. As a result, storage becomes a source of the difficulty.

Investing in silver through a silver ETF eliminates the need for investors to worry about storage, purity, and other issues, allowing them to invest in silver more efficiently. 

In addition to being a precious metal, silver has a variety of industrial applications. It is in great demand in the manufacturing, investment, and jewellery industries. Hence, Silver ETFs are better than buying silver physically or buying and rolling over in the MCX's derivative markets. 

Higher industrial usage of silver, silver is more sensitive to economic changes than gold, which has limited uses beyond Jewellery and investment purposes. When economies take off, demand tends to grow for silver.