360 ONE Mutual Fund Files Draft For Silver ETF

360 ONE Mutual Fund (previously IIFL Mutual Fund) has announced the launch of the 360 ONE Silver ETF, filing its draft papers with SEBI. This open-ended exchange-traded fund (ETF) aims to mirror domestic silver prices, offering investors an opportunity to track the performance of the precious metal while leveraging the liquidity of stock exchanges.

Key Features of the Silver ETF

• Objective: The fund’s primary goal is to generate returns aligned with the domestic price of silver, as determined by the London Bullion Market Association (LBMA) daily spot-fixing. While it seeks to replicate silver’s performance, tracking errors may occur.
• Investment Allocation: The ETF will allocate 95%-100% of its assets to silver and silver-related instruments, while the remaining 0%-5% will be held in debt or money market securities for liquidity.
• Unit Pricing: Each unit is priced at ₹10 during the New Fund Offer (NFO).

Trading & Benchmark

The ETF units will be listed on the NSE and BSE to ensure liquidity. For pricing, the fund will use silver’s daily spot price from LBMA as its benchmark. Investors can trade units in real-time during market hours, subject to supply and demand dynamics.

Important Considerations

• Risk Factors: Investing in this ETF involves risks such as silver price volatility, interest rate fluctuations, and currency movements. Additionally, liquidity risks might arise if trading halts occur or demand decreases.
• No Exit Load: Investors will not incur an exit load when selling units through the stock exchanges.

New Fund Offer Timeline

The NFO dates will be announced soon, with the fund reopening for continuous sale and repurchase shortly after. Units will be available in minimum lots of one unit during trading hours.

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Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.