Invesco Mutual Fund has launched two silver-based schemes, Invesco India Silver ETF and Invesco India Silver ETF Fund of Fund (FoF), with their new fund offers (NFOs) open for subscription from October 27 to November 9.
The Invesco India Silver ETF is an open-ended scheme that will invest predominantly in physical silver of 99.9% purity or higher. Its objective is to generate returns in line with the price performance of physical silver, subject to tracking error.
The Invesco India Silver ETF Fund of Fund will invest predominantly in units of the fund house’s silver ETF. While the ETF route requires a demat account to trade on the stock exchange, the FoF provides an alternative through the mutual fund route without requiring investors to hold a demat account.
Both schemes will be managed by Abhisek Bahinipati.
The minimum lump-sum investment during the NFO is ₹5,000 for the silver ETF and ₹1,000 for the FoF, with additional investments in multiples of ₹1.
The FoF will also offer systematic investment plan (SIP) options. The minimum investment is ₹20 for daily SIPs, available only through digital platforms; ₹100 for weekly and monthly SIPs; and ₹300 for quarterly SIPs.
The FoF will charge an exit load of 1% for units redeemed or switched out on or before 15 days from the date of allotment. No exit load will apply after 15 days.
Silver has both precious-metal and industrial uses, including in solar panels, electric vehicles, semiconductors and medical devices. However, returns from the schemes will depend on silver price movements, and investors will be exposed to fluctuations in the metal’s price. The ETF’s returns may also differ from silver price performance because of tracking error.
Mutual fund investments are subject to market risks. Investors should read the scheme-related documents before investing.
NOTE TO READERS
Disclaimer: This article is for informational purposes only and should not be construed as investment advice. Readers should consult certified experts before making any investment decisions.