Loading...

Home >> Blog >> SBI Silver ETF NFO: Review, Opening Date & NAV

SBI Silver ETF NFO: Review, Opening Date & NAV

  


Introduction

Do you include yourself among those who want to invest in mutual funds and who are keen to show yourself as a leader in this market? Or do you want to invest your money to make it big?

We're back with another thought-provoking and informative blog post that can help you with your next financial step. So, this time, we've devised the business concept of the 'SBI Silver ETF'.

This article will describe what is included in the fund program and how it works.

 

Everything You Need to Know About SBI Silver ETF - NFO

SBI Silver ETF, created by SBI Silver Mutual Fund, is an open-ended mutual fund. Subject to tracking inaccuracy, the program seeks to produce returns that represent the performance of physical silver in domestic pricing.

The lowest investment required to join is Rs.5000 for investors and in multiple of Rs.1 thereof. The scheme is suitable for such investors who are looking for long-term wealth creation for 5 or more years and returns on investments that, although prone to tracking error, follow domestic silver prices. The scheme has no Exit Load.

To learn about the fund's asset allocation, and other financial characteristics that influence decision-making, carefully read this blog.

 

 

SBI Silver ETF - NFO Overview

The investment period for the Scheme is set for June 24, 2024, to June 27, 2024. The scheme is a very high-risk scheme. There is no assurance that the scheme's investment goal will be met. The scheme will invest in Silver and securities/instruments related to silver, Government securities such as liquid mutual fund units, Treasury Bills, Treasury Securities, SDLs, and Triparty Repo. The scheme has no entry load.

 

Fund Overview

The SBI Silver ETF has an AUM of Rs.4,707.32 crores (as of 31 May 2024), and the minimum subscription amount is set at Rs.5000.

Start Date

24 June 2024

End Date

27 June 2024

VRO rating

-

Expense ratio

NA

Exit load

Nil

AUM (Fund size)

Rs.4,707.32 crores

Lock-in

No Lockin

Stamp Duty

0.005% (From July 1st 2020)

Benchmark 

Against the domestic price of Silver

Min. Investment

Rs.5000

Risk

Very High

Short-term capital gains (STCG)

For less than 3 years, as per Tax Slab

Long-term capital gains (LTCG)

For more than 3 years, 20% is applicable.

 

 

The Objective of the fund

The Scheme intends to produce returns that, allowing for tracking error, correspond to the success of physical silver in local prices. Nevertheless, there can be no assurance or guarantee that the scheme's investment goals will be met.

Asset allocation (% of Net Assets) of the Scheme's portfolio will be as follows:

Types of Instruments

Minimum Allocation (% of Net Assets)

Maximum Allocatio (% of Net Assets)

Risk Profile

Silver and/or silver-related instruments

95

100

Very High

Government securities, such as Triparty Repo, and liquid mutual fund units.

0

5

Low

 

Peers of SBI Silver ETF 

Index / Debt Funds

1Y Return

AUM (Cr)

Axis Silver FoF Regular-Growth

28.29%

41.85

HDFC Silver ETF FoF Regular - Growth

28.83%

89.47

Kotak Silver ETF Regular - Growth

28.36%

538.90



Risk Factors in Such Funds

  • The worth of silver retained by the plan is correlated with the NAV of the units. The price and value of silver are subject to swings for a variety of causes, and any such changes will impact the NAV of units under the plan. The supply and demand for silver in the domestic and international markets, inflation and interest rate trends, trading in silver as a commodity, potential legal constraints on the movement and trade of silver imposed by the RBI, the Government of India, or other countries which supply or purchase silver to or from India, patterns and restrictions on the import and export of silver jewellery into and out of India, etc. are some of the factors that could affect the price of silver.

  • A general drop in the price of silver could have an impact on the scheme's performance because it intends to invest at least 95% of the net assets in silver and/or securities related to silver. Regardless of their potential for profit, the Scheme makes investments in physical silver and/or silver-related instruments.

  • Although this is an open-ended scheme, investors should be aware that they will still need to purchase or sell scheme units on stock exchanges where they are listed for liquidity at market price, in accordance with the exchange's laws and regulations.

  • Since SBI Silver ETF is not an equity-oriented fund, it is possible that it will not offer the tax benefits associated with equity-oriented funds. For information on appropriate tax rates, investors should individually check with their tax professionals.

 

Past Performance of Index / Debt Funds

Index / Debt Funds

NAV (Rs)

Annualized Return (1Y)

Return/Risk

Navi Nifty Bank Index Fund - Direct Plan-Growth

13.48

18.86%

Very High Risk

Motilal Oswal S&P 500 Index Fund - Direct Plan-Growth

20.911

27.92%

Very High Risk

Invesco India Nifty G-Sec Sep 2032 Index Fund - Direct Plan-Growth

1107.65

7.58%

Moderate Risk

 

 

SBI Silver ETF NFO - Who can invest?

This fund is ideal for you if you are looking for long-term wealth creation for 5 or more years and returns on investments that, although prone to tracking error, follow domestic silver prices.

 

SBI Silver ETF NFO - Growth Fund Managers

  • Vandna Soni

Conclusion

The scheme comes under a very high-risk category and it plans to invest in Silver and securities/instruments related to silver. The price and value of silver are subject to swings for many causes, and any such changes will impact the NAV of units under the plan. Prices of Silver are prone to fluctuating. Always assess your Financial Goals, Risk tolerance, etc. before making an investment decision. 

 

Disclaimer: This NFO analysis is provided solely for informative reasons and should not be construed as investment advice. Always conduct research and talk with a financial advisor before investing.



Frequently Asked Questions

+

The SBI Silver ETF - NFO will open for business on June 24, 2024.

+

The end date of the SBI Silver ETF  – NFO is 27 June 2024.

 

+

The SBI Silver ETF - NFO's fund managers is Vandna Soni

+

The minimum investment for the SBI Silver ETF  – NFO is Rs.5000.



Liked What You Just Read? Share this Post:




Viewer's Thoughts

Any Question or Suggestion

Post your Thoughts


NFO

Related Blogs

Axis Nifty500 Value 50 Index Fund NFO

NFO | 07-10- 2024

Axis Nifty500 Value 50 Index F...

Explore The Axis Nifty500 Value 50 Index Fund NFO. Learn its objectives, benefits & Risk Factors. NFO opens on 04 Oct & ...

Continue Reading
ICICI Prudential Nifty200 Value 30 ETF NFO

NFO | 05-10- 2024

ICICI Prudential Nifty200 Valu...

Explore The ICICI Prudential Nifty200 Value 30 ETF NFO. Learn its objectives, benefits & Risk Factors. NFO opens on 30 S...

Continue Reading
ICICI Prudential Nifty200 Value 30 Index Fund NFO

NFO | 03-10- 2024

ICICI Prudential Nifty200 Valu...

Explore the ICICI Prudential Nifty200 Value 30 Index Fund. Learn its objectives, benefits & Risk Factors. NFO opens on 3...

Continue Reading
Aditya Birla Sun Life Crisil-IBX AAA NBFC-HFC INDEX-Sep 2026 Fund NFO

NFO | 01-10- 2024

Aditya Birla Sun Life Crisil-I...

Explore Aditya Birla Sun Life Crisil-IBX AAA NBFC-HFC INDEX- Fund NFO. Learn benefits, & risks, and invest smartly...

Continue Reading
Baroda BNP Paribas Nifty200 Momentum 30 Index Fund

NFO | 30-09- 2024

Baroda BNP Paribas Nifty200 Mo...

Explore Baroda BNP Paribas Nifty200 Momentum 30 Index Fund NFO. Open 25 Sept, close 09 Oct 2024. Learn benefits, risks, ...

Continue Reading
Groww Nifty India Defence ETF FOF

NFO | 30-09- 2024

Groww Nifty India Defence ETF ...

Discover the Groww Nifty India Defence ETF FOF. Learn its benefits, objectives, and risks. NFO open: 23 Sept, close: 04 ...

Continue Reading
to Learn Important Strategy worth Rs.15000
Subscribe on
YouTube
Follow us on
Instagram
Follow Us on
Twitter
Like Us on
Facebook