A Beginner's Guide To Investing In Icici Silver Etf

ICICI Prudential Silver ETF is a scheme that seeks to generate returns in line with the performance of physical silver in domestic prices. The fund's holdings are mostly in Large Cap stocks and debt instruments, indicating a conservative investment strategy. With an expense ratio of 0.40% and no lock-in period, the scheme has delivered 5.90% returns since its inception. Investors can purchase ICICI Prudential Silver ETF directly from the ICICI Prudential Mutual Fund website or through platforms like MF Central and MF Utility. Alternatively, investors can seek assistance from a mutual fund distributor, including most banks, to facilitate the purchase.

Where to buy ICICI Prudential Silver ETF

ICICI Prudential Silver ETF is an open-ended scheme that tracks the performance of physical silver and silver-related instruments, derived from the LBMA AM fixing prices. The fund offers two options for investors: the Regular Plan and the Fund of Fund (FOF) Plan.

The Regular Plan is a standard investment option where investors can purchase units of the ICICI Prudential Silver ETF directly from the mutual fund company or through a broker. This option typically has a higher expense ratio, which means there are additional fees involved in purchasing and managing the investment. However, it is easily accessible to investors who wish to invest directly in the ETF.

On the other hand, the FOF Plan is a unique feature offered by ICICI Prudential Mutual Fund. This plan is designed for non-Demat investors who want exposure to the ICICI Prudential Silver ETF without having to purchase the units directly. The FOF structure allows investors to benefit from investing in silver ETFs without the need for a Demat account. The minimum investment requirement during the New Fund Offer (NFO) period was as low as ₹100, making it accessible to a wide range of investors.

To purchase the ICICI Prudential Silver ETF, investors can follow these steps:

• Contact ICICI Prudential Mutual Fund: Investors can get in touch with the mutual fund company directly to understand the investment process and make purchases. This can be done by reaching out to their customer support or visiting their offices.
• Online Investment Platforms: Investors can also utilise online investment platforms, such as Groww, to invest in the ICICI Prudential Silver ETF. These platforms provide an easy and convenient way to invest in mutual funds and ETFs. They offer features like paperless account opening, transparent fee structures, and technical analysis tools to assist in decision-making.
• Brokers and Distributors: Another option is to purchase the ICICI Prudential Silver ETF through authorised brokers or distributors. This may include financial institutions or individuals who are licensed to sell and distribute the fund.
• SIP or Lumpsum: Investors have the flexibility to choose between investing through a Systematic Investment Plan (SIP), which allows them to invest a fixed amount at regular intervals, or opting for a lumpsum investment, where a one-time payment is made upfront.

It is important to note that the availability of the fund may vary depending on market conditions and the fund house's discretion. Therefore, investors should refer to the official sources and seek the most up-to-date information before making any investment decisions.

How to buy ICICI Prudential Silver ETF online

ICICI Prudential Silver ETF is an exchange-traded fund (ETF) that seeks to generate returns in line with the performance of physical silver in domestic prices. The fund's holdings are mostly in Large Cap stocks and debt instruments, indicating a conservative investment strategy. With a very high-risk rating, this fund is suitable for investors comfortable with higher levels of risk.

• Visit the ICICI Prudential Mutual Fund Website: Mutual funds can be purchased directly from the website of the fund house. Go to the ICICI Prudential Mutual Fund website and create an account if you don't already have one.
• Understand the Fund Details: Before investing, it is essential to understand the key features of the fund. ICICI Prudential Silver ETF has no lock-in period, and its expense ratio is 0.40%. The fund's Net Asset Value (NAV) and performance should be considered, along with its portfolio allocation and risk level.
• Choose the Investment Type: You can invest in ICICI Prudential Silver ETF through a Systematic Investment Plan (SIP) or a lump sum investment. A SIP allows you to invest a fixed amount at regular intervals, while a lump sum investment is a one-time payment.
• Complete the Purchase: After deciding on the investment type, proceed to the online purchase. Provide the required details, such as your bank account information, and follow the instructions on the ICICI Prudential Mutual Fund website to complete the investment process.

It is important to note that investing in mutual funds, especially those with a high-risk rating, carries a certain level of risk. Be sure to carefully consider your investment goals, time horizon, and risk tolerance before investing.

Additionally, if you are not comfortable with the online process, you can seek the assistance of a mutual fund distributor or connect with your bank for guidance.

How to buy ICICI Prudential Silver ETF with the help of a distributor

To buy ICICI Prudential Silver ETF with the help of a distributor, you can follow these steps:

• Understand the fund: Before investing, it is important to understand the ICICI Prudential Silver ETF fund and its investment objective. The scheme seeks to generate returns that are in line with the performance of physical silver in domestic prices, subject to tracking errors. The fund's holdings are mostly in Large Cap stocks and debt instruments, indicating a conservative investment strategy.
• Connect with a distributor: If you are not comfortable buying mutual funds online, you can seek the help of a mutual fund distributor. Most banks also act as mutual fund distributors, so you can connect with your bank for assistance.
• Provide necessary information: The distributor will require information such as your investment goals, risk tolerance, and the amount you wish to invest. Be sure to provide accurate and detailed information to ensure suitable recommendations.
• Review the distributor's recommendations: The distributor will suggest the ICICI Prudential Silver ETF or other similar funds based on your investment profile. Review the recommended funds' performance, risk level, and expense ratios before making a decision.
• Complete the purchase: Once you have selected the ICICI Prudential Silver ETF, the distributor will guide you through the purchase process. They will assist in filling out the necessary paperwork and facilitating the transaction.
• Monitor your investment: After purchasing the ICICI Prudential Silver ETF, it is important to regularly monitor its performance. Stay updated on the fund's NAV, returns, and any relevant news or updates. You can also seek ongoing guidance from your distributor to make informed decisions regarding your investment.

Remember, the ICICI Prudential Silver ETF has a very high-risk level, and mutual funds, in general, are subject to market risks. Be sure to carefully consider the risks and do your own research before investing.

ICICI Prudential Silver ETF share price

The ICICI Prudential Silver ETF is an open-ended silver commodities scheme that was launched on January 21, 2022. The investment objective of the fund is to generate returns that are in line with the performance of physical silver in domestic prices, subject to tracking errors. The current Net Asset Value (NAV) of the ICICI Prudential Silver ETF as of November 7, 2024, is Rs 91.48 for the Growth option of its Regular plan. The fund size is Rs 3,714.26 Cr as of September 30, 2024, with a minimum investment of Rs 100 and no minimum SIP investment. The expense ratio is 0.40%, and there is no exit load. The fund has delivered returns of 32.75% in 1 year and 14.93% since its launch.

The ICICI Prudential Silver ETF can be purchased directly from the ICICI Prudential Mutual Fund website. It can also be bought through platforms like MF Central and MF Utility. Most banks also act as mutual fund distributors, so investors can seek their assistance. As of July 31, 2023, the fund had invested 98% in commodities and 2.4% in cash and cash equivalents. The risk associated with this investment is graded as "Very High" as per SEBI's Riskometer.

The fund's returns are currently better than the category average. The fund's holdings are mostly in Large Cap stocks and debt instruments, indicating a conservative investment strategy. The minimum investment required is Rs 100, and the NAV as of August 18, 2023, was Rs 71.7631.

ICICI Prudential Silver ETF expense ratio

The ICICI Prudential Silver ETF is an open-ended silver commodities scheme that belongs to the ICICI Prudential Mutual Fund House. The expense ratio of the fund is 0.4% for the regular plan as of 31 August 2024. The expense ratio is the annual fee charged by the fund to manage an investor's money. It is usually not paid explicitly but is deducted from the Net Asset Value (NAV) on a daily basis.

The expense ratio of the ICICI Prudential Silver ETF is higher than that of the direct funds but lower than the category average of 0.51%. The direct funds have a lower expense ratio because they do not have to pay a commission to a broker or distributor.

The ICICI Prudential Silver ETF was launched on 21 January 2022 and is currently managed by Gaurav Chikane. The investment objective of the fund is to generate returns that are in line with the performance of physical silver in domestic prices, subject to tracking errors. The fund size is Rs. 3,150.82 Cr as of 31 August 2024, with a minimum investment requirement of Rs. 100.

Frequently asked questions