Leading mutual funds have queued up before market regulator SEBI for launching silver Exchange Traded Fund weeks after the market regulator cleared regulations which paved the way for retail investments in the white metal.
Aditya Birla Sun Life Mutual Fund, Nippon India and Mirae Asset filed scheme information document (SID) with market regulator SEBI for launching Silver Exchange Traded Fund.
While Birla MF and Mirae Asset will launch silver ETF, Nippon MF will hit the market with both an ETF and a Fund of Fund. The ETF will invest in physical silver of SEBI prescribed quality and standard.
A small portion of the net assets will be invested in debt and money market instruments to meet the liquidity requirements of the scheme. It will also invest in instruments notified by SEBI with silver as underlying asset, said Birla MF in its filing with SEBI.
It will also invest up to 10 per cent of asset in exchange traded commodity derivatives having silver as the underlying by Silver ETFs.