SBI Silver ETF Fund Of Fund Scheme Announced by SBI, New Fund offer Starts on 27 June 2024

State Bank of India’s SBI Mutual Fund has launched a new SBI Silver ETF Fund of Fund scheme. Subscription to this new scheme will only be available until 5 July. The subscription for this new fund offer starts on 27 June. The minimum investment per application in this New Fund Offer (NFO) subscription is Rs. 5000.

SBI Silver ETF Fund of Fund is an open-ended fund of fund scheme that invests in ETFs. The fund will invest 95% to 100% in silver and silver-related sectors, and the remaining 5% of the funds will be invested in government securities such as SDL and Treasury Bills.

The manager of this fund is Harsha Sethi. SBI Mutual Fund MD and CEO Shamsher Singh mentioned that there is a demand for metals in today’s global economic conditions, which is affecting inflation. The demand for silver is also increasing, and this demand is expected to increase the value of silver in the long run.

This provides an opportunity for investors looking to move into commodities to consider investing through a silver ETF or fund of funds offering.

Additionally, SBI Mutual Fund Deputy MD DP Singh stated that silver is not only a precious metal but also an industrial metal, and its demand will be high in sectors like electronics and renewable energy. This is expected to improve the long-term growth potential of silver and benefit commodity investors, even though it may not have as much impact as gold currently.