HDFC Asset Management Company Ltd. (HDFC AMC), one of India’s leading mutual fund houses that manages assets worth INR 4.22 trillion as on 30 Sept 2022, has announced the launch of HDFC Silver ETF Fund of Fund (HDFC’s Silver ETF FOF), in order to expand their suite of “HDFC MF Index Solutions”. HDFC AMC, has been managing passive funds for the past 20 years. HDFC Silver ETF FOF is an open-ended Fund of Fund scheme investing in HDFC Silver ETF. The captioned NFO opens on October 7, 2022, and closes on October 21, 2022.
The fund is available for all, since a Demat account is not required. Smart investment options like SIP, STP are available and the fund offers ease of investing in small amounts and is very cost effective. The investment objective is to seek capital appreciation by investing in units of HDFC Silver ETF*. Investing in physical silver and storing it in a safe manner could be difficult for an individual, hence HDFC’s Silver ETF FOF NFO gives an opportunity to the investors to get exposure to silver through mutual fund, thereby eliminating the need to store silver physically. Festive times such as the upcoming Dhanteras are an especially good time to invest in this auspicious metal.
Commenting on the launch, Mr. Navneet Munot, Managing Director and Chief Executive Officer, HDFC Asset Management Co. Ltd. said, “HDFC AMC believes in understanding the consumers’ needs and aims to offer them easy and effective solutions for investments. The HDFC Silver ETF FOF will provide investors the opportunity to invest in silver which serves dual utilities of being a precious metal and an industrial commodity.”
The Fund encourages investors to get exposure to silver due to its multi-purpose utility. It provides an opportunity to leverage on the greater adoption of Silver for new age technologies – solar power, electric vehicles, and to industrial use cases from electrical switches to chemical producing catalysts, while hedging against currency risk.
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