Tata Mutual Fund has launched a NFO of open-ended scheme, Tata Silver Exchange Traded Fund, with the objective of generating returns that are in line with the performance of physical silver in domestic prices. The scheme is open for subscription from January 2, 2024, to January 9, 2024, with a minimum subscription amount of Rs 100. There is no entry or exit loads applicable.
The investment objective of the fund is to generate returns that are in line with the performance of physical silver in domestic prices, subject to tracking error. However, there is no assurance or guarantee that the investment objective of the Scheme will be achieved.
Funds Allocation
| Instruments | Indicative Allocations (% of total assets) | Risk Profile | |
| Minimum | Maximum | ||
| Silver (Includes Physical Silver and other Silver related instruments as permitted by SEBI from time to time) | 95 | 100 | High |
| Debt & Money Market Instruments including units of Mutual Funds | 0 | 5 | Medium |
Fund Manager
Tapan Patel, Age: 35, Qualification: CFA, MFA, BBA, Total Experience (in years): 16
Peer Silver ETF
| Particulars | Nippon Ind Silver ETF | ICICI Pru Silver ETF | ICICI Pru Silver ETF FoF |
| Net Asset(Rs Cr) | 1,212 | 918 | 456 |
| Return Since Launch (%) | 9.56 | 7.57 | 8.48 |
| Risk-o-meter | Very High | Very High | Very High |
| Exit Load (Days) | — | — | 1.00 (15) |
| Expense Ratio (%) | 0.51 | 0.4 | 0.64 |
| Fund Age | 1Y 11M | 1Y 11M | 1Y 11M |
| Portfolio Turnover (%) | 53 | — | — |
Other Silver ETFs – Trailing Returns (%)
| Returns | Nippon Ind Silver ETF | ICICI Pru Silver ETF | ICICI Pru Silver ETF FoF |
| YTD | 1.35 | 1.35 | 1.05 |
| 1 Day | 1.13 | 0.71 | 0.74 |
| 1 Week | -0.88 | -0.57 | -0.27 |
| 1 Month | -3 | -3 | -2.77 |
| 3 Months | 3.38 | 3.42 | 3.39 |
| 6 Months | 7.92 | 7.99 | 7.55 |
| 1 Year | 4.17 | 3.4 | 7.11 |
Risks associated with the scheme (NFO)
Tracking Error: The performance of the Scheme may not be commensurate with the performance of the underlying benchmark on any given day or over any given period, referred to as tracking error.
Price risk: Fluctuations in the price of silver
Liquidity risk: Inability to buy/sell appropriate quantity of silver
Event risk/Custody Risk: Risk of loss, damage, theft, impurity etc. of silver
Liquidity or Marketability Risk: This refers to the ease with which a security can be sold at or near to its valuation yield-to maturity (YTM).
Credit Risk: Credit risk or default risk refers to the risk that an issuer of a fixed income security may default (i.e., will be unable to make timely principal and interest payments on the security). Normally, the value of a fixed income security will fluctuate depending upon the changes in the perceived level of credit risk as well as any actual event of default. The greater the credit risk, the greater the yield required for someone to be compensated for the increased risk.
Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. The information is based on various secondary sources on the internet and is subject to change. Please consult with a financial expert before making investment decisions.
We're Live on WhatsApp! Join our channel for market insights & updates
Start Your Mutual Fund Investments Journey Today
Join our 2 Cr+ happy customers
Get the link to download the App
