Motilal Oswal applied for Silver ETF FoF scheme to invest in gold and silver together

Silver ETFs were recently allowed to be launched by the market regulator Securities and Exchange Board of India (Sebi), while Gold ETFs have been available in the Indian market since 2007.

There will be an exit load of 1% on Motilal Oswal Precious Metals FOF.

very soon investors gold and silver (Gold-Silver, Will get a chance to invest together in asset management company Motilal Oswal Mutual Fund has applied for Motilal Oswal Precious Metals F&F (Motilal Oswal Precious Metals FoFs). An open-ended fund of funds scheme which Gold And Silver Exchange-traded funds (ETFs) will invest in units. As of now, there is no product to invest in both silver and gold in India. Silver ETFs were recently allowed to be launched by the market regulator Securities and Exchange Board of India (Sebi), while Gold ETFs have been available in the Indian market since 2007.

ICICI Prudential Mutual Fund had applied for a precious metals fund in December 2021 and is yet to get regulatory approval.

live mint As per the Scheme Information Document (SID) of Motilal Oswal Precious Metals FOF filed with SEBI, the scheme targets a minimum amount of Rs 10 crore during the new fund offer (NFO) period. The fund house said in the SID, this is the minimum amount required to operate the scheme and if it is not collected during the NFO period then the invested amount will be returned to all the investors without any return.

Two Silver ETFs Launched Last Month

The first two silver ETF schemes – Aditya Birla Sun Life Silver ETF and ICICI Prudential Silver ETF – were launched last month.

According to data from Value Research Online, ICICI Prudential’s plan, which was launched on January 21, has an AUM of Rs 106 crore as of January 31 and has given -2.24% returns since its launch till February 11. The AUM of Aditya Birla Sun Life Silver Scheme is Rs 17 crore and is up 2.69% since its launch.

The document stated that the benchmark for the scheme would be the domestic price of gold and silver as derived from the LBMA AM fixing prices, as there is no publicly available index that would trade gold and silver bullion and instruments with gold and silver. to track the price.

The benchmark, The London Bullion Market Association (LBMA), will be priced in the ratio of 70 per cent gold and 30 per cent silver. Motilal Oswal MF has proposed that fund manager Abhirup Mukherjee decide the allocation for units of Gold ETF or Silver ETF.

exit load

In addition, it has been proposed that Motilal Oswal Precious Metals FoFs will have an exit load of 1 per cent. If the units are redeemed on or before 15 days from the date of allotment and thereafter will be nil.

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