Detailed look into Motilal Oswal’s Silver and Gold ETFs

Silver and Gold ETFs

Exchange Traded Funds are types of mutual fund schemes that track a particular index, any type of commodity or currencies. An ETF is listed on the stock exchange and can be traded therein. ETFs are passively managed schemes since they track the underlying security or index movement.

Fund of Funds is a mutual fund scheme that invests in other mutual fund schemes. These funds, called FoFs in short, track the returns of the mutual funds that they invest in and are also passively managed.

Recently, Motilal Oswal AMC launched a new scheme that is an ETF and an FoF at the same time. The scheme is called the Gold and Silver ETF Fund of Funds which allows you to invest in Gold and Silver ETFs together through the same scheme. Let’s have a detailed insight into the scheme.

Related - Here's a detailed guide about commodity funds

Details of Motilal Oswal Gold and Silver ETF Fund of Funds

The Motilal Oswal Gold and Silver ETF Fund of Funds is launched through a New Fund Offer (NFO). The NFO period starts on 26th September 2022 and ends on 7th October 2022.

You can invest in the scheme with a minimum amount of Rs.500 and in multiples of Re.1 thereafter.

The scheme is open-ended, allowing you to invest and redeem at any time. You can invest through a broker or visit Motilal Oswal’s website - directly with the fund house.

Portfolio of Motilal Oswal Gold and Silver ETF Fund of Funds

The scheme will invest in Gold ETFs and Silver ETFs. The starting weights of allocation into these ETFs will be in the ratio of 70% and 30%, respectively. After that, the daily weights of gold and silver ETFs would be determined by market movements. However, the maximum weightage is restricted to 90%, which will be reviewed quarterly.

The fund emphasizes gold investment because gold has a higher value and is more liquid than silver. Moreover, gold enjoys better stability than silver, making it the preferred choice of fund managers.

Why gold and silver proved to be a good investment choice?

Besides their ornamental usage, both gold and silver have their respective benefits when it comes to their investment values. Have a look-

So, you can check out the scheme details and invest in it if you want to add a touch of diversification to your portfolio and want to invest in precious metals. With the addition of the scheme, you can mitigate investment risks and expose your portfolio to the return potential of gold and silver. Find out how to invest in gold ETFs

benefits of investing in gold and silver

Here's how Motilal Oswal's Gold and Silver ETF FoF can help in portfolio diversification