Zerodha Silver ETF

What is the investment objective of the Zerodha Silver ETF?

• The investment objective of the scheme is to generate returns that are in line with the performance of physical silver in domestic prices, subject to tracking error

What is the benchmark index for the Zerodha Silver ETF?

• The benchmark of Zerodha Silver ETF is the domestic prices of physical silver.

What is the asset allocation strategy of the Zerodha Silver ETF?

• The Zerodha Silver ETF primarily invests in physical silver with a purity of 99.9%. A small portion of the fund's assets may be held in cash or cash equivalents to meet operational requirements. While the fund intends to maintain this asset allocation, temporary deviations may occur based on market conditions, but any changes will be rebalanced within 7 calendar days.

For detailed information on the asset allocation, please refer to the SID - https://assets.zerodhafundhouse.com/offer-documents/sid/Zerodha%20Silver%20ETF%20-%20SID.pdf

What are the risks associated with investing in the Zerodha Silver ETF?

Key risks include:

• Market Risk: Silver prices are influenced by global economic factors, geopolitical events, and market sentiment, leading to potential price fluctuations.

• Commodity Risk: Silver, as a commodity, exhibits high price volatility, which can impact the fund's NAV.

• Tracking Error Risk: The ETF's performance may deviate slightly from the benchmark due to factors like expenses and operational inefficiencies.

• Liquidity Risk: Fluctuations in trading volume can impact the liquidity of ETF units.

• Physical Silver Storage Risk: Risks associated with the secure storage, insurance, and handling of physical silver.

What is the expense ratio of the Zerodha Silver ETF?

•  The expense ratio will be disclosed  after allotment of the NFO and will be available on the Zerodha Fund House website. It is subject to the regulatory limits prescribed by SEBI.

How can I invest in the Zerodha Silver ETF NFO?

•  You can invest in Zerodha Silver ETF during the NFO using applications such as Coin by Zerodha and MyCAMS. Once listed on the stock exchanges, Zerodha Silver ETF will be available on all major stock broking platforms.

What is the minimum investment amount during the NFO?

•  The minimum investment amount during the NFO is ₹1000 and in multiples of ₹1000 thereafter.

What are the NFO dates?

•  The NFO period is from March 10, 2025 to March 18, 2025.

How can I buy/sell Zerodha Silver ETF units after the NFO?

•  After the ETF is listed on the stock exchange, you can buy and sell units through your Demat account, just like any other ETF.

How is the Net Asset Value (NAV) of the Zerodha Silver ETF calculated?

•  The NAV is calculated by dividing the market value of the silver held by the fund, less expenses, by the total number of outstanding units.

What factors affect the NAV of the Zerodha Silver ETF?

Factors affecting the price include:

• Global silver prices

• Currency exchange rates (INR/USD)

• Demand and supply dynamics

• Tracking error

• Economic and geopolitical events

How often is the NAV declared?

•  The NAV will be declared on all business days and published by 11.00 pm on the websites of Zerodha Fund House and AMFI.

How is the Zerodha Silver ETF taxed?

Taxation will only be applicable on the gains from the units of the Zerodha Silver ETF

• For investment period <= 1 year

• Gains/profits are taxed as per your tax slab (plus 4% cess and surcharge, if any)

• For Investment period > 1 year (Before 1st April 2025)

• Gains/profits are taxed as per your tax slab (plus 4% cess and surcharge, if any)

• For Investment period > 1 year (Starting from 1st April 2025)

Gains/profits are treated as long-term capital gains and taxed at 12.5% (plus applicable surcharge and 4% cess)

Where can I see my Zerodha Silver ETF holdings?

• If you applied for the NFO through Zerodha Coin, you can view your holdings in the "Holdings" section of your Zerodha Kite account, starting one business day after the allotment date.

• If you applied through the myCAMS platform, your holdings will be visible in your respective Demat account's holdings section, also starting one business day after the allotment date.

When will my Zerodha Silver ETF holdings appear in my account? / Why can't I see my Silver ETF holdings yet?

• Your holdings will be reflected in your account within 5 business days after the allotment date. Please allow this processing time for the holdings to be updated in your account.