NEW SBI Silver ETF Fund Launched by SBI Mutual Fund
SBI Mutual Fund has announced that they have launched a new SBI Silver ETF Fund of Fund, which is an open-ended fund.
What does one want to achieve when they invest in this fund?
The main purpose of the scheme is to earn returns by investing in units of the SBI Silver Exchange Traded Fund (ETF). Investors cannot be certain that they will achieve the investment objective of the scheme in question.
To participate in this scheme, how may one invest?
The investors can invest under the scheme with a minimum investment of Rs.1000 per plan/option, they can also invest in terms of the plan or options of Re 1. There is no maximum limit to it, as the costs of investment can be pressed to the extreme.
Is there any inherent risk in the fund?
They propose a scheme involving “very high risk,” as mentioned in the scheme information document, and one has to understand that his principal will be at very high risk only. But if one is in any doubt about whether the product is right for them, independent financial advice should be sought.
In what way would the scheme be in a position to compare its results?
The SBI Silver ETF Fund shall be benchmarked against the domestic price of silver, which shall be calculated on the basis of the London Bullion Market Association’s (LBMA) silver daily spot fixing price.
The trustee may alter the scheme’s benchmark in future if these benchmarks are better suited for the investment objective of the scheme at such time and as per SEBI guidelines and directives from time to time.
Is there any regulator of mutual funds in the market like this?
At the moment, all major AMCs have come up with a Silver ETF fund of funds, and thus willing investors can get access to the total returns of the securities in this specific index. These securities are not very old, and therefore investors can evaluate their performance based only on recent results.
Is there any entry load or exit load on this scheme?
This scheme attracts no “entry load,” which is a right signal to the investors, which requires them no payment to park their earnings to invest in this scheme. “Exit Load” would be calculated as follows:
1. For exit on or before 15 days from the date of allotment, it is also worth mentioning the current density, which seems to be 1%.
2. For exit after 15 days from the date of allotment: none.
The load structure can be changed on a prospective basis by the AMC.
What type of mutual fund is this kind of scheme offering?
This is an open-ended exchange-traded fund scheme that seeks to invest in the SBI Silver ETF Fund.
This open-ended fund scheme is ideal for investment hunters seeking:
1. Long-term capital growth.
2. Invested in units of SBI Silver ETFs, which in turn invested in actual silver.
