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MFs launch silver ETFs amid increased demand
February 22, 2022
Mutual Fund investors can now check out putting resources into silver trade exchanged assets (ETFs), rather than purchasing actual silver, where the valuable metal is the hidden resource. In a transition to improve cooperation in the bullion market, the Securities and Exchange Board of India (Sebi) had allowed the launch of silver ETFs in November 2021. Following this, three mutual fund houses have introduced silver ETFs in January 2022, while others are simultaneous.
While silver costs have dropped from $30.35 in 2012 to $23.84 in 2022, a sharp increase in costs in the midst of raised expansion and expanded modern interest can’t be precluded before long, said experts. The compound annual growth rate (CAGR) for the previous three years was additionally seen at 18% because of the pandemic-driven purchasing, experts highlighted. Addressing FE, Chintan Haria, head product development, and strategy, ICICI Prudential AMC, said, “Silver value history shows that during seasons of rising expansion, there can be an increase in cost.
While silver costs have dropped from $30.35 in 2012 to $23.84 in 2022, a sharp increase in costs in the midst of raised expansion and expanded modern interest can’t be precluded before long, said experts. The compound annual growth rate (CAGR) for the previous three years was additionally seen at 18% because of the pandemic-driven purchasing, experts highlighted. Addressing FE, Chintan Haria, head product development, and strategy, ICICI Prudential AMC, said, “Silver value history shows that during seasons of rising expansion, there can be an increase in cost.
Moreover, being a precious commodity, silver has been delivered during seasons of emergency. In every one of the beyond three times of emergency (subprime contract, tighten fit of rage and Covid – 19), which impacted worldwide financial markets, silver has outperformed equity as an asset class.”
Important Links:
- PG Diploma in Banking, Financial & Insurance (BFSI): https://tscfm.org/courses/pg-diploma-in-banking-financial-insurance-bfsi/
