NFO Alert: Groww Mutual Fund expands offerings with new silver ETF

Groww Mutual Fund has introduced the Groww Silver ETF, an open-ended exchange-traded fund designed to provide investors with exposure to the domestic price of physical silver. This ETF offers a straightforward and efficient way to invest in silver, eliminating the need for physical storage and insurance.

The new fund offer or NFO of the scheme is open for subscription and will close on May 16. The scheme will reopen for continuous sale and repurchase on or before May 30.

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Groww Silver ETF replicates the domestic price of physical silver, based on the daily spot fixing price from the London Bullion Market Association (LBMA). By investing in dematerialized silver units, this ETF aims to offer a convenient alternative to investing in physical silver without the complexities of ownership and storage, according to a press release by the fund house.

The Groww Silver ETF seeks to provide returns that align with the performance of silver. While the ETF aims to track the price of silver, there are no guarantees of returns, as silver prices can fluctuate with market conditions.

The minimum application amount is Rs 500 and in multiples of Re 1 thereafter. The exit load is nil. The Groww Silver ETF is suitable for investors seeking long-term capital appreciation and those looking to gain exposure to the silver market in a simple and convenient way.

The scheme will be benchmarked against Domestic Price of Physical Silver (based on London Bullion Market association (LBMA) silver daily spot fixing price) and will be managed by Wilfred Gonsalves.

Silver has historically shown little to no fluctuation in price when stock markets experience ups and downs. This characteristic makes it a potential option for investors seeking assets that may behave differently from equities, said the release.

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In 2024, silver demand exceeded supply, driven by its increasing use in industries such as electronics, electric vehicles, and renewable energy. With demand continuing to rise, silver may see long-term value growth.

The current gold-to-silver ratio stands at 91.64, suggesting that silver may be relatively more affordable compared to gold. This could provide an opportunity for investors to enter the silver market at favorable price levels, the release added.

The Groww Silver ETF aims to provide liquidity by allowing units to be bought or sold during market hours on the stock exchange, offering flexibility to investors.

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