Axis Mutual Fund launches Silver ETF and Silver FoF

Axis Mutual Fund has launched the Axis Silver ETF, an open ended scheme replicating domestic price of Silver, and Axis Silver Fund of Fund, an open ended fund of fund scheme investing in units of Axis Silver ETF. Both the funds will be benchmarked against the LBMA Silver daily spot AM fixing price.

Pratik Tibrewal, Fund Manager, Commodities, will be managing the Axis Silver ETF and the minimum application amount would be Rs 500 per application and in multiples of INR 1/- thereafter. Aditya Pagaria, Fund Manager, Fixed Income will be managing the Axis Silver FoF and the minimum application amount be Rs 500 and in multiples of Re 1/- per application in the ETF and Rs 5,000 and in multiples of INR 1/- thereafter in the FoF.

The fund house said in a press release that Silver in its physical form may pose challenges with respect to corrosion over time, safety, purity of the metal, liquidity risk etc. Investors can opt to gain exposure to the precious metal via an ETF (Exchange Traded Fund) that aims to generate returns in line with the performance of physical silver in domestic prices, subject to tracing error. Investors who do not have a Demat account can gain exposure by investing in Silver FoF (Fund of Fund).