DSP Investment Managers launched DSP Silver ETF on 1 August and the NFO (New Fund Offer) closes on 12 August. This is a precious commodity–based scheme which will deploy funds in silver and related instruments according to a company statement.
“Investing in silver via an ETF is a modern and smart way for investors to gain exposure to this precious metal in an easy, digital form. Increasing demand for silver in industries, newer technologies and a shift to renewable sources of energy and the safe-haven demand can also act as favourable tailwinds for the metal,” a media release said quoting Anil Ghelani, Head of Passive Investments & Products at DSP Investment Managers said.
An investment in DSP Silver ETF is suitable for investors looking to diversify, or for experienced investors or those with access to expert financial advice,” the press release said.
Ghelani warned that returns from such investment may vary but only in the short term due to heightened volatility.
DSP Silver ETF lists objective, reasons for investment:
1_) Aims to hedge against volatility and inflation – Silver can be a good diversifier in volatile times since commodity price movements have low correlation with equities, the website says.
2_) Good performance history: Silver, as a commodity, has delivered 12 per cent returns on a 5 year rolling basis, beating inflation.
3_) Digital silver is easy to buy or sell when compared to the physical version, with the freedom to trade actively with ease.
4_) High demand, limited supply: High industrial demand with over 50 per cent of the world’s silver being consumed by electronics, auto, power, pharmaceutical sectors albeit limited supply. A crucial raw material for solar panels, the demand is expected to only increase.
5_) Investment: Rs 5000.
Investors willing to invest in this must have a trading account with a broker.
(Disclaimer: The views/suggestions/advises expressed here in this article is solely by investment experts. Zee Business suggests its readers to consult with their investment advisers before making any financial decision.)