Last Updated:
DSP Mutual Fund launched the DSP Silver ETF Fund of Fund, investing in DSP Silver ETF units. The NFO closes on 9th May 2025, offering exposure to silver’s potential price rise.
DSP Mutual Fund launches DSP Silver ETF Fund of Fund, offering investors exposure to silver through mutual funds. NFO open until 9th May 2025.
Silver ETFs: DSP Mutual Fund announced the launch of its new open-ended scheme, the DSP Silver ETF Fund of Fund, designed to offer investors a convenient and structured way to gain exposure to silver through the mutual fund route. This Fund of Fund will primarily invest in units of DSP Silver ETF, providing returns that closely correspond to the performance of physical silver in domestic markets.
The NFO has opened for subscription and will close on 9th May 2025.
Silver as a commodity plays a crucial role in various industries such as electronics, automotive, power, and jewelry, with demand expected to rise due to the global shift towards renewable and cleaner energy sources. Supply growth for silver has been limited, and recent years have shown a consistent supply deficit.
The year 2025 could be the fifth year running where demand for silver could be more than the supply. And this supply deficit could be more than 20% of annual demand. In the past, when such deficits occurred, even a small incremental increase in investment demand for silver can lead to a rise in prices.
Indian investors may also benefit from currency depreciation, as silver is priced in USD. Over time, silver prices in INR have outperformed those in USD, providing an additional advantage when the rupee weakens.
The DSP Silver ETF Fund of Fund offers the advantage of owning the metal in a convenient digital form without the requirement for a demat account to transact. It also presents a systematic way to invest in Silver via SIPs along with the flexibility of redeeming the units without any lock-in period.
“With the launch of DSP Silver ETF Fund of Fund, we are making it even simpler for investors to access silver as an asset class through the mutual fund platform. Our aim is to provide a transparent, liquid, and cost-effective solution for those seeking diversification and long-term growth potential through commodities,” said Diipesh Shah, Fund Manager of DSP Silver ETF Fund of Fund.
Disclaimer: The views and investment tips by experts in this News18.com report are their own and not those of the website or its management. Users are advised to check with certified experts before taking any investment decisions.