NFO Alert: Tata Mutual Funds launches Tata Silver Exchange Traded Fund.Everything you need to know

Tata Mutual Funds has announced the launch of Tata Silver Exchange Traded Fund. The scheme will open for public recruitment on 2 January 2024 and close on 9 January 2024. The scheme will reopen for continued sales and buybacks from 17 January 2024.Also read: Tata Mutual Fund launches Tata Silver ETF Fund of Funds

What kind of mutual fund scheme is this?

This is an open-ended exchange traded fund scheme that replicates/tracks the domestic price of silver. This product is suitable for investors seeking:

• Returns that match the performance of physical silver at domestic prices may be a tracking error.
• Investing in silver and silver-related products

What is the main purpose of investing in this fund?

The Fund’s investment objective is to generate returns that match the performance of physical silver at domestic prices, subject to tracking error. However, there is no guarantee that the scheme’s investment objective will be achieved.

How can I invest in this system?

Investors can invest under this scheme with minimum investment amount. INR100 per plan/option, multiples of Re 1. There is no investment limit.

Under normal circumstances, the scheme’s asset allocation would be as follows:

Are there similar mutual funds in the market?

To date, a number of asset management companies (AMCs) have launched such silver exchange-traded funds (ETFs), which allow interested investors to invest in the equivalent of the total return of securities in this particular index. Returns are now available. These include:

How is the performance of this scheme benchmarked?

The performance of this system shall be based on the domestic silver price. The performance of this system is benchmarked against the domestic price of silver, as there is no suitable index available for silver or silver-related instruments.

Are there any ingress or egress loads to this scheme?

This scheme does not include an “entry load”. This means that investors do not have to pay anything to park their profits in this scheme. “Exit Road” will also be “zero”.

Who will manage this plan?

Tapan Patel is the designated fund manager of the scheme.

Does the Fund involve any inherent risks?

As detailed in the scheme information document, the scheme involves “very high risk” and is ideal for investors who want to understand that their principal is only exposed to very high risk. However, investors should consult their financial advisor if they have any questions. whether the product is suitable for them.