May 18, 2024

UTI Mutual Fund launches ‘UTI Silver ETF’ and ‘UTI Silver ETF FoF’

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UTI Mutual Fund (UTI) launches ‘UTI Silver ETF’ and ‘UTI Silver ETF FoF’. UTI Silver ETF is an open-ended scheme replicating / tracking domestic price of silver and UTI Silver ETF FoF is an open-ended Fund of Fund Scheme investing in UTI Silver Exchange Traded Fund (UTI Silver ETF). The New Funds Offer opened on April 10, 2023 and will close on April 13, 2023 & April 19, 2023 respectively.

The investment objective of UTI Silver ETF is to generate returns that are in line with the performance of physical silver in domestic prices, subject to tracking error. The investment objective of UTI Silver ETF FoF is to seek to provide returns that correspond to returns provided by UTI Silver ETF by investing in units of UTI Silver ETF. However, there is no guarantee or assurance that the investment objective of the scheme will be achieved.

Mr. Sharwan Goyal, Fund Manager and Head – Passive, Arbitrage and Quant strategies at UTI AMC, said on the launch, “The launch of UTI Silver ETF and UTI Silver ETF FoF, offers an opportunity to leverage on the greater adoption of Silver for new age technologies and a potential hedge against currency depreciation and Inflation risk. The funds will provide investors a simple and cost-effective way to take exposure in Silver as an asset class.”

Salient features of UTI Silver ETF

Eligible Investors

  • Investors seeking returns that are in line with the performance of physical silver over the long term, subject to tracking errors
  • Investment predominantly in Physical Silver and Silver related instruments

New Fund Offer Price

  • On the day of allotment, basis of price of silver, the NFO allotment price per unit will be determined.

Minimum Application Amount

  • The minimum application amount is INR 5,000/- and in multiples of INR 1/- thereafter. Subsequent minimum investment under a folio is INR 1,000/- and in multiples of INR 1/- thereafter with no upper limit.

Plans and Options Available

  • Not available. The scheme reserves the right to introduce / alter / extinguish options at a later date.

Load Structure

  • Entry Load: Nil (Not Applicable as per SEBI guidelines)
  • Exit Load: Nil

Benchmark Index

  • Domestic Price of Silver (based on LBMA Silver daily spot fixing price)

Salient features of UTI Silver ETF FOF

Eligible Investors

  • Long term capital growth
  • Returns that are commensurate with the performance of UTI Silver ETF through investment in units of UTI Silver ETF

New Fund Offer Price

  • On the day of allotment, basis of price of silver, the NFO allotment price per unit will be determined.

Minimum Application Amount

  • The minimum application amount is INR 5,000/- and in multiples of INR 1/- thereafter

Plans and Options Available

  • Regular Plan
  • Direct Plan. Both the plans offer only Growth Option.

Load Structure

  • Entry Load: Nil (Not Applicable as per SEBI guidelines)
  • Exit Load: 1% – If redeemed or switched out on or before completion of 15 days from the date of allotment of units.
  • Nil – If redeemed or switched out after completion of 15 days from the date of allotment of units.

Benchmark Index

  • Domestic Price of Silver (based on LBMA Silver daily spot fixing price)

 The UTI Silver ETF and UTI Silver ETF FoF will be available for subscription from 10th April through UTI Mutual Fund’s website and authorized distributors.