Kotak Mahindra AMC launches Silver ETF Details here | Tech US News

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New Delhi: Kotak Mahindra Asset Management Company Ltd (KMAMC) on Thursday announced the launch of an open-ended silver exchange-traded fund (ETF). AMC said the fund will provide investors with an opportunity to avoid the current economic uncertainty and geopolitical risks in several major global economies.

The New Fund Offer (NFO) will open for subscription on November 21 and close on December 5, with no load for investors.

The fund aims to generate returns in line with the performance of physical silver in domestic prices, subject to tracking error, but Kotak Mahindra AMC added the caveat that there is no assurance or guarantee that the scheme will achieve its investment objective. will be obtained. .

The Fund may also participate in silver related instruments. Exchange Traded Commodity Derivatives (ETCDs) with silver will be considered silver related instruments for silver ETFs.

“Investing in silver ETFs is easier and safer than buying it in its physical form, providing easy liquidity and the flexibility to invest in smaller amounts. Additionally, it provides a market equivalent of physical silver while providing a fair market value for the metal.” Offers a lower transaction cost than the competition,” Kotak Mahindra AMC said in its statement.

The units of the fund will be of the size of the creation unit or a multiple thereof and each creation unit, according to the company, consists of 30,000 units of Kotak Silver ETF. One unit is equal to about 1 gram of silver.

“Our silver ETF launch is in line with our continued efforts to provide easy and efficient access to various asset classes. It will provide easy access to silver as an asset that is not only a precious metal but also has many industrial uses. The stability in silver prices since the beginning of the year provides a good opportunity for those looking to allocate some money to this asset for diversification,” said Nilesh Shah, Group President and Managing Director, Kotak Mahindra. Asset Management Co. Ltd. said

The Global Silver Survey 2022 shows that supply has increased following pandemic demand for silver due to increased industrial activity and retail investors’ appetite for the metal. The year 2021 recorded the highest inflow in silver exchange traded products.

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