DSP Silver ETF Fund of Fund to Provide Easy Access to Silver Investment..!
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.
During geopolitical tensions
and uncertainties, precious metals like silver and gold present a safe haven
for investors. Precious metals are also a good inflation hedge for investors
who fear that trade wars and tariff tensions would cause high inflation. But
besides such investment demand, more than 50% of the annual demand for Silver
is for industrial use. Such industrial use of silver in EVs, solar panels and
5G networks is likely to grow even more, as nations across the world move
towards cleaner energy and newer technologies. If we see the current
Gold/Silver ratio and compare it to long term history, the prices of silver
appear relatively undervalued, which could indicate a potential for silver to
outperform. However, investors should expect fluctuations in short-term returns.
Mr.
Venkatesan P
Founder, PAISACARE FINANCIAL SERVICES, Chennai
Phone number: 98404 22744
E Mail id: venkat.profit@gmail.com
Web Site: https://paisacare.in
Mr. P.Venkatesan had a 30 years’
experience in Financial Services (Life Insurance, Health Insurance, Mutual
Funds etc.)
Office Address:
Paisacare
Financial services
No 3B 2nd
Street, Sivanandha Nagar
Kolathur, Chennai
-600 099
Read articles written by Mr. Mr. P.Venkatesan in Nanayam Vikatan, a leading personal financial management magazine.
Disclaimer: Mutual Fund investments are subject to market risks, read all scheme
related documents carefully. The past performance of the mutual funds is not
necessarily indicative of future performance of the schemes.
