Kotak Silver ETF is coming, it is better to invest, keep money ready


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Kotak Silver ETF : Kotak Mahindra Asset Management Company (AMC) has launched an open-ended silver exchange traded fund. The Silver ETF will provide investors with an opportunity to hedge against ongoing economic uncertainties and geopolitical risks in several major global economies, AMC said in a statement. In fact, when there is turmoil in the global economy, there is a lot of uncertainty in the equity market. In this case, gold and silver can be better.

When will NFO open
The New Fund Offer (NFO) will open for subscription to all investors on November 21, 2022 and will close on December 5, 2022. Kotak AMC said the objective of the scheme is to generate returns commensurate with the performance of physical silver in domestic prices. That is, this ETF will perform in the same way as silver will perform in the Indian physical market.

Exchange Traded Commodity Derivatives
The scheme can also invest in silver related instruments. Exchange-traded commodity derivatives (ETCDs) that have silver underlying will be treated as silver-related instruments for silver ETFs. However, there is no assurance or guarantee that the investment objective of the scheme is achieved. That is, there is risk.

Kotak Silver ETF is coming, it is better to invest

Units of Fund
The units of the fund will be in the creation unit size or multiples thereof. Each creation unit contains 30,000 units of Kotak Silver ETF. Each unit is equal to about 1 gram of silver.

investment would be beneficial
Kotak AMC said in a statement that investing in Silver ETFs is easier and safer than buying in physical form. There is a lot of liquidity here. You can easily earn money by selling anytime. It provides the facility of investing in small amounts. In addition, ETFs have lower transaction costs than physical silver while providing the metal at par with the market. According to the World Silver Survey 2022, the demand for silver has outstripped supply in the post-coronavirus period, due to a pick-up in industrial activity and increased interest from retail investors for silver. In 2021, record investments also came in exchange-traded silver. Silver has given an absolute return of 43% over a period of 5 years. However, past performance may or may not be sustained in the future. According to Nilesh Shah, Group President and Managing Director, Kotak Mahindra AMC, the launch of Silver ETF is to provide easy and efficient access to various asset classes. The strengthening of silver prices from the beginning of the year will be a good opportunity for those who want to diversify their portfolio by investing in different assets.

Kotak Silver ETF is coming, it is better to invest

This is what happens with Gold ETFs
Gold ETFs are considered a good option to invest in gold. Gold ETF is actually a mutual fund. Gold ETFs also move up and down on the rate of gold. Gold ETF investors get to earn huge returns over a long period of time. The good thing is that gold ETFs are in electronic form. You do not need to worry about the purity of the gold in it. Gold ETFs can be sold quickly and at the prevailing rate as compared to physical gold.

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english summary

Kotak Silver ETF is coming it is better to invest keep money ready

Kotak AMC said the objective of the scheme is to generate returns commensurate with the performance of physical silver in domestic prices. That is, this ETF will perform in the same way as silver will perform in the Indian physical market.

Story first published: Thursday, November 10, 2022, 20:17 [IST]





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