Kotak Mahindra Mutual Fund Introduces Kotak Silver ETF

Nov 24, 2022

Kotak Mahindra Mutual Fund has launched – Kotak Silver ETF

It is an open-ended exchange traded fund replicating/tracking price of Silver.

Accordingly, the investment objective is to generate returns that are in line with the performance of physical silver in domestic prices, subject to tracking error. The Scheme may also participate in silver related instruments. Exchange Traded Commodity Derivatives (ETCDs) having silver as the underlying shall be considered as Silver related instrument for Silver ETFs.

However, there is no assurance or guarantee that the investment objective of the scheme will be achieved.

Under normal circumstances, Kotak Silver ETF will hold an allocation of 95% to 100% of its assets in Silver and instruments with Silver as underlying that may be specified by SEBI and 0% to 5% in Debt & Money Market Instruments including units of Debt oriented Mutual Funds.

As per the Scheme Information Document, Kotak Silver ETF may invest in Silver and Silver related instruments (including derivatives) and intends to track the domestic price of Silver. Investment in Debt securities and money market instruments will be as per the limits in the asset allocation table of the Scheme, subject to permissible limits laid under SEBI (MF) Regulations. Investment in debt securities will be guided by credit quality, liquidity, interest rates and their outlook. The Scheme may also invest in the schemes of Mutual Funds.

Kotak Silver ETF’s performance will be benchmarked against Price of silver (based on LBMA daily spot fixing price).

The scheme will be managed by Mr Jeetu Valechha Sonar and Mr Abhishek Bisen.

The NFO opens for subscription on November 21, 2022 and closes on December 05, 2022. The schemes will reopen for continuous sale and repurchase on or before December 19, 2022.

The fund’s NAV is priced at Rs 10/- per unit during the NFO period. The minimum subscription amount is Rs 5,000/- and in multiples of any amount thereafter. 

Presently, the scheme does not offer any Plans/Options for investment.