Aditya Birla Sun Life AMC Limited, a subsidiary of Aditya Birla Capital Limited (a significant non-bank financial services’ conglomerate), an investment manager to Aditya Birla Sun Life Mutual Fund (ABSLMF) has announced the launch of Aditya Birla Sun Life Silver ETF Fund of Fund and Aditya Birla Sun Life Silver ETF combination. This provides investors an opportunity to invest in a new commodity. Aditya Birla Sun Life Silver ETF Fund of Fund is an open ended fund of fund scheme investing in the units of Aditya Birla Sun Life Silver ETF, while the Aditya Birla Sun Life Silver ETF, is an open ended exchange-traded fund tracking physical price of silver. Both the NFOs are open for subscription from today, January 13, 2022 and closes on January 27, 2022.
ABSLAMC’s dual-pronged approach enables it to cater to a wider investor base, including those who don’t have a demat or trading account. While the Aditya Birla Sun Life Silver ETF Fund of Fund retains all the benefits of investing in Silver, it also provides the added feature of a mutual fund. This includes easy liquidity, flexibility to choose plans and the option to subscribe or hold the units in demat as well as non-demat form. Also, the Aditya Birla Sun Life Silver ETF Fund of Fund enables investment through the Systematic Investment Plan (SIP) route at a frequency suitable to the investor.
Commenting on the launch, Mr. A. Balasubramanian, MD & CEO, Aditya Birla Sun Life AMC Limited said, “Silver has proved to be an effective hedge in bear markets and is also receptive to market movements in bull phases. Additionally, during market consolidation phases, when the correlation between asset classes usually reduce, silver has tended to outperform other asset classes. It thus can be an ideal addition to an investors’ portfolio for diversification purposes.”
He adds, “With this in mind, we have launched two schemes: Aditya Birla Sun Life Silver ETF Fund of Fund and Aditya Birla Sun Life Silver ETF. By investing in these schemes, investors can reap the benefits of investing in silver and generate returns in the long term. At the same time, they can aim to avoid pitfalls associated with investing in physical silver, such as purity issues, making charges, insurance costs and storage costs.”
As a commodity, silver has demonstrated strong versatility. From being used in jewelry, coins, and kitchenware in ancient times to being used in electric vehicles (EVs) and solar panels more recently, the use-cases of silver are constantly expanding. As a result, there has been a steady increase in the demand for silver.
In India, the silver demand has been driven by silver jewelry, silverware, and industrial application. The increasing adoption of EVs and renewable energy sources provide further tailwinds. Aditya Birla Sun Life Silver ETF Fund of Fund and Aditya Birla Sun Life Silver ETF can thus provide investors an opportunity to benefit from the performance of silver in the long term. The minimum amount for investment in the Aditya Birla Sun Life Silver ETF Fund of Fund and Aditya Birla Sun Life Silver ETF is Rs. 100 and Rs. 500 respectively, and in multiples of Re. 1 thereafter during the NFO period.
The Creation Unit size for Aditya Birla Sun Life Silver ETF shall be 30,000 units and in multiples of 1 unit thereof.
The investors will bear the recurring expenses of the Fund of Fund (‘FoF’) scheme in addition to the expenses of the Underlying Schemes in which Investments are made by the FoF scheme.
The product labeling assigned during the NFO is based on internal assessment of the Scheme characteristics or model portfolio and the same may vary post NFO when the actual investments are made.