SBI Mutual Fund launches new SBI Silver ETF Fund of Fund

SBI Mutual Fund introduced the SBI Silver ETF Fund of Fund, an open-ended scheme that invests in SBI Silver ETF.

The program began accepting public subscriptions on June 27, 2024, and is scheduled to end on July 05, 2024. The program resumes allowing for ongoing buying and selling within five business days after the initial allotment date.

What type of mutual fund scheme is this?

This scheme is an open-ended ETF replicating the SBI Silver ETF Fund of Fund.

This Fund of Fund scheme with no fixed end date is ideal for investors looking for opportunities.

• Investing in SBI Silver ETF units, which ultimately invest in physical silver.
• Long-term capital growth

What is the main objective of investing in this fund?

The primary objective of the plan is to generate returns by investing in units of SBI Silver ETF. It cannot be guaranteed that the scheme will reach its investment goal.

What is the process for making an investment in this scheme?

Investors have the option to join the program with a minimum investment of Rs 1,000 per plan/option, and additional investments can be made in increments of Re 1. There is no maximum limit for investing.

Typically, the scheme will mainly invest in SBI Silver ETF, with an indicative range of 95% to 100% of total assets. Between 0% and 5% of the remaining allocation will be invested in government securities such as Triparty Repo and debt mutual funds units. This strategic distribution aims to give investors exposure mainly to silver ETFs while also including a small allocation to government securities and debt instruments for diversification of risk and stability.

Benchmark

The performance of the SBI Silver ETF will be benchmarked against the price movement of silver itself.

Is there any inherent risk in the fund?

The method includes "Very High Risk" according to the information provided in the Scheme Information Document and is most appropriate for investors who are willing to accept that their initial investment will only face very high risk. Nonetheless, if investors are unsure about the product's suitability, they should seek guidance from their financial advisors.

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