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Highlights:

*  An open-ended Fund of Fund scheme that invests in units of ICICI Prudential Silver ETF

* The underlying ETF invests in Physical Silver and silver related instruments with Silver as the underlying

* The FOF structure allows non-demat investors to take exposure to Silver ETF

* Minimum investment required during NFO: Rs. 100/-

Mumbai, January 06, 2022: A complete portfolio has a good mix of all asset classes. Silver is one such precious commodity which has generally proven to be an investors' best bet during times of crisis and high inflation. Hence, to enable investors in building a diversified and all weather portfolio ICICI Prudential after launching India’s first Silver ETF has now launched India’s first Silver ETF FOF- ICICI Prudential Silver ETF Fund of Fund, an open ended fund of fund. Owing to the FOF structure, investors even without a demat account can take exposure to Silver ETF.

In each of the past three periods of crisis (Subprime mortgage, taper tantrum and Covid -19) which affected global financial markets, Silver has at times outperformed equity as an asset class. Apart from this, silver price history shows that during times of rising inflation, there can be an uptick in silver price.

Speaking on the launch of the product, Mr. Chintan Haria, Head – Product Development & Strategy, ICICI Prudential Mutual Fund said, “In India, traditionally, people have been investing in gold and silver in the physical format. Since silver is bulky in nature and hence difficult to store, we believe the ETF FOF form will be one of the preferred ways for investors. By investing through silver ETF FOF, investors need not worry about purity, quality or liquidity of the underlying asset and is also free from storage related hassles. Given its low correlation with other asset classes, investors can consider taking exposure to silver as a part of their portfolio diversification exercise”.

Apart from investment, silver has extensive application across renewable energy, industrials and electronics, jewellery etc. The industrial demand for silver as a proportion of total demand has increased due to its increasing application in modern environmental friendly manufacturing, a trend which is likely to gather pace in the times ahead.

What Drives Value of Silver

Why should investors consider ICICI Prudential Silver ETF Fund of Fund?

* Diversifying portfolio with silver can reduce overall portfolio risk

* Investor need not worry about purity, quality, liquidity or storage costs

* Unlike gold, majority of silver is consumed and not available for recycling

* Silver is a tangible asset with diverse array of applications as it is used for solar panels, medical instruments, switches, satellites etc.

* Industrial demand for silver is expected to increase with the use of more renewable energy and mobility thus potential of generating higher returns in future

Investors can invest as low as Rs. 100 during and after the NFO period. For those looking to stagger their investment, can consider investing through the SIP route. The benchmark index for the scheme is domestic price of silver as derived from the LBMA prices.

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