ICICI Prudential Mutual Fund, a leading asset management firm, has announced the introduction of India's first silver ETF (Exchange Traded Fund), which will invest in actual silver and silver-related products. The new fund offer will begin accepting subscriptions on January 5 and end on January 19, according to the document.
Furthermore, a number of asset management firms are preparing to create silver ETFs and have submitted documentation to the markets regulator Sebi for approval.
Among the fund houses that have applied for silver ETFs are HDFC Mutual Fund, Nippon India Mutual Fund, Mirae Asset Investment Managers, Aditya Birla Sun Life Asset Management Company, and DSP Mutual Fund. This comes after the Securities and Exchange Board of India (Sebi) established operating criteria for the introduction of silver ETFs in November. These ETFs must invest at least 95 percent of their net assets in silver and silver-related products, according to the guidelines.
The ICICI Prudential Silver ETF is an open-ended exchange-traded fund that will track silver prices in India. The proceeds of the programme will be invested in actual silver and silver-related instruments.