Kotak Mahindra MC Announces Opening of Silver ETF – NFO on November 21 | Tech US News

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by the CNBCTV18.com IST (Published)

The New Fund Offering (NFO) opens for subscription to all investors on November 21, 2022 and closes on December 5, 2022. There will be no burden for investors, the fund house said.

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

The New Fund Offering (NFO) opens for subscription to all investors on November 21, 2022 and closes on December 5, 2022. There will be no burden for investors, the fund house said.

“Kotak Silver ETF aims to generate returns consistent with the performance of physical silver in domestic prices, subject to tracking error. The scheme may also participate in silver related instruments. Exchange Traded Commodity Derivatives (ETCDs) Silver will be a must. For silver ETFs to be considered a silver instrument,” he said.

However, there is no assurance or guarantee that the investment objective of the scheme will be achieved.

The units of the fund shall be in the form of creation unit size or multiples thereof. Each creation unit consists of 30,000 units of Kotak Silver ETF. Each unit is equal to approximately 1 gram of silver.

Investing in silver ETFs is easier and safer than buying them in physical form, providing easy liquidity and the flexibility to invest in smaller amounts. Additionally, it offers a lower transaction cost than physical silver, providing a fair market value for the metal.

According to the Global Silver Survey 2022, after the pandemic, demand for silver has outstripped supply due to increased industrial activity and retail investors’ appetite for the metal. In 2021, there was a record influx of silver exchange-traded products. The silver lining is that the metal has achieved a 43% absolute return over a 5-year period. However, past performance may or may not hold in the future.

Nilesh Shah, Group President and Managing Director, Kotak Mahindra Asset Management Co. Ltd. said, “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 The stability in silver prices since the beginning of the year presents a good opportunity for those looking to allocate some money to this asset for diversification.

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