Silver can be a good diversifier in volatile times since commodity price movements have low correlation with equities.
Far easier to 'keep' or 'sell' this version of silver when compared to the physical version, with the freedom to trade actively with ease.
Silver, as a commodity, has delivered ~12%^ returns on a 5 year rolling basis.
~50% of the world's silver is consumed by electronics, auto, power, pharma and many other industries but the supply & availability for recycling is limited. As the world shifts to renewable & cleaner energy resources, there is potential for demand to go up since silver is a crucial raw material.
In our ETF format, you can buy this precious metal with just Rs. 5000, instead of spending a lot on expensive jewellery items.
Its price will be in line with the price movement of silver
If you are considering buying physical silver as an investment
If you value low-cost investing ideas
If you are an experienced Indian investor with a well-set core portfolio of equities/bonds, looking to diversify no more than 5-10% of your portfolio into commodities
If you have the sectoral understanding to 'extract value' from changing commodity sector cycles
If you value diversification & want to hedge your bets
Expect short term return fluctuations, especially during periods of market volatility
Investment in DSP Silver ETF is a high-risk strategy and suitable for experienced investors or those who invest on advice of financial advisors.
You need a trading account with a broker/ sub-broker
You also need a Demat account for holding the ETF units
What is an ETF?
Exchange Traded Funds, or ETFs, are a type of funds/schemes that track an index, sector, commodities or other assets, but which can be purchased or sold on the stock exchange like any regular stock. They combine the features and potential benefits of stocks or bonds and mutual funds. Like individual stocks, ETFs can be traded throughout the day at real time prices that change based on supply and demand.
What are the benefits of an ETF?
Simplicity - Buying / Selling ETFs is as simple as buying / selling any other stock on the exchange.
Realtime Trading - ETFs allow investors to take benefit of intraday movements in the market, which is not possible with open-ended Funds.
Low cost - The cost of investing in ETFs is generally lower than an active fund invested in the same market of assets.
Seamless trading - Existing investors insulated from bearing transaction costs of other investors coming in or going out.
Transparency - Holdings published daily, so investor always knows exactly what is owned.
What do you need to invest in an ETF?
You need a trading account with a broker/ sub broker and a demat account to hold the ETF units. Without these two, you won’t be able to invest in any ETF.
Who is the fund manager for the fund?
Mr. Ravi Gehani will be the fund manager of the ETF.
Data as on Jun 30, 2022
Data Source for any statistics/ figures above unless otherwise mentioned: Internal/ NSE
^Source: Bloomberg, Returns in INR terms. Period considered: Jan 2000 - Jun 2022
During the NFO period, you can invest as low as Rs. 5,000/- and in multiples of Re.1/-. Note that unit allotment (if you invest during the NFO period) units will be issued at a premium approximately equal to the difference between face value and Allotment Price during the NFO and at NAV based prices on an on-going basis
There is no assurance of any returns/capital protection/capital guarantee to the investors in the Scheme.
Past performance may or may not be sustained in future and should not be used as a basis for comparison with other investments.
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DSP Silver ETF (An open ended exchange traded fund replicating/tracking domestic prices of silver) |
This product is suitable for investor who are seeking*
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* Investors should consult their financial advisers if in doubt about whether the Scheme is suitable for them.
It is to be distinctly understood that the permission given by BSE Limited should not in any way be deemed or construed that the SID has been cleared or approved by BSE Limited nor does it certify the correctness or completeness of any of the contents of the SID. The investors are advised to refer to the SID for the full text of the Disclaimer clause of the BSE Limited.
It is to be distinctly understood that the permission given by NSE should not in any way be deemed or construed that the Scheme Information Document has been cleared or approved by NSE nor does it certify the correctness or completeness of any of the contents of the Draft Scheme Information Document. The investors are advised to refer to the Scheme Information Document for the full text of the ‘Disclaimer Clause of NSE’.
