The asset management firm (AMC) Edelweiss Mutual Fund (Edelweiss MF ) is slated to introduce India’s first programme that provides exposure to gold and silver through a single fund. The Edelweiss Gold and Silver ETF Fund of Fund (FoF) by Edelweiss MF new fund offer will expire on September 7. Bhavesh Jain and Bharat Lahoti are the fund managers for the scheme of Edelweiss MF. Silver-based mutual funds were initially introduced in January of this year, while India’s first gold fund, Nippon India ETF Gold BeES, was released in March 2007.
Edelweiss MF introduces gold and silver fund: Key Points
- Exchange-traded funds (ETFs) for silver were introduced to the Indian market by MF companies with permission from the Securities and Exchange Board of India (Sebi) in September. The initial silver-based fund in India was the ICICI Prudential Silver ETF.
- It should be noted that Motilal Oswal MF and ICICI Prudential MF submitted applications for gold and silver funds in February and December, respectively, but have not yet begun to implement the plans.
- The new strategy from Edelweiss MF aims for equal exposure to the two metals and will periodically adjust.
- The scheme by Edelweiss MF would invest in shares of gold and silver ETFs managed by other fund houses or Edelweiss MF since the AMC lacks a single gold or silver fund.
- The plan letter by Edelweiss MF claims that silver outperforms during precious metal bull rallies and that gold outperforms during recessions. Long-term, both offer a strong defence against inflation.
- The yellow metal increased in value by 26.1%, 31.7%, and 11.3%, respectively, during the recessions and market downturns of 2008, 2011, and 2016, according to data.
- On the other side, newer technology like solar panels, electric cars, and smartphones are increasing the need for silver. However, over the previous ten years, silver hasn’t done well.
Edelweiss MF: Important Takeaways For All Competitive Exams
- Managing director and CEO, Edelweiss MF: Radhika Gupta
- Sebi-registered investment adviser and co-founder of MyWealthGrowth: Harshad Chetanwala