Zerodha Silver ETF FoF

Zerodha Silver ETF FoF (an open-ended Fund of Funds scheme) investing in units of Zerodha Silver ETF, which tracks the performance of the Domestic Price of Physical Silver. 

This FoF (Fund of Funds) provides a convenient way to invest in Silver, while providing asset class diversification to your portfolio. This FoF allows you to diversify your exposure to Silver without the complexities of storage of physical Silver.

1. What is Zerodha Silver ETF FoF?

Zerodha Silver ETF FoF is an open-ended Fund of Funds scheme investing in units of Zerodha Silver ETF, which tracks the domestic price of physical Silver. This fund provides a convenient way to gain exposure to Silver without the complexities of physical ownership and storage.

2. What are the benefits of investing in Zerodha Silver ETF FoF?

• Diversification: Gain exposure to Silver as an asset class in the digital form.
• Accessibility: Start your investment journey with a low minimum investment requirement.

3. How to invest in Zerodha Silver ETF FoF?

You can invest through various direct investment platforms such as Coin, Groww, Paytm Money, ETMoney, CAMS Online,MF Central, etc.

4. What is the minimum amount required to invest in Zerodha Silver ETF FoF?

The minimum investment is ₹500, and you can invest ‘any amount’ thereafter during the New Fund Offer. After the initial offer period, the minimum investment is ₹100, in multiples of ‘any amount’ thereafter.

5. What are the risk factors for investing in Zerodha Silver ETF  FoF?

The scheme is classified as Very High-risk as per the risk-o-meter. Investing in a Silver ETF FoF involves market risks associated with the price fluctuations of Silver, etc. As with any investment, it's essential to assess your risk tolerance and consult a financial advisor. Please read the Scheme Information Documents carefully for better understanding of risk associated with this scheme.

6. What is the difference between Zerodha Silver ETF FoF and Zerodha Silver ETF?

Zerodha Silver ETF FoF: A Fund of Fund scheme that invests in units of the Silver ETF, providing diversified exposure without requiring physical Silver ownership. This fund also provides the flexibility of investing via the Systematic Investment Plan (SIP) route.

Zerodha Silver ETF: Being an ETF, this trades only on the stock exchanges and requires a demat account/trading account for transacting in this scheme.

7. When will I be able to track the units of Zerodha Silver ETF FoF?

You will be able to track your units of Zerodha Silver ETF FoF by July 11th.

Here's a breakdown of the key dates:

• NFO Open Date: June 23rd

• NFO Close Date: July 04th

• Allotment Date: July 08th

• Reopen Date (for continuous sale and repurchase): July 11th
  
  

Once units are allotted (subject to applicable validations) on July 08th, it may take 1-2 business days to reflect on your holdings on the platform from which you invest. 

8. Does Zerodha Silver ETF FoF track the prices of physical Silver?

Unlike the Silver ETF which directly tracks the price of domestic physical Silver - this fund invests in units of Silver ETF and accordingly tracks the closing price of the underlying ETF on the stock exchange. 

9. What are the top holdings of Zerodha Silver ETF FoF?

The top holdings of Zerodha Silver ETF FoF will primarily consist of investments in units of Zerodha Silver ETFs. Under normal circumstances, the asset allocation of the Scheme is as follows:

Units of Zerodha Silver ETF: 95% to 100% of total assets.

Debt Securities and Money Market Instruments: 0% to 5% of total assets.

Refer Scheme Information Document (SID) for complete details.

10. Where can I track the performance of my investment in Zerodha Silver ETF FoF?

You can track the performance of your investment on the App or on the platform from  where you have invested.

11. Can I set up a Systematic Investment Plan (SIP) in Zerodha Silver ETF FoF?

SIP in this scheme can be registered once the scheme re-opens for further subscriptions.

12. What is the fund’s expense ratio, and what fees should I expect?

The Expense Ratio of the Scheme will be available and disclosed on the website once the Scheme re-opens for continuous subscription. 

13. What factors should I consider before investing in Zerodha Silver ETF FoF?

You may consider factors such as portfolio allocation, exposure to Silver as a part of asset class diversification and your overall investment goals. Please note it is always  advisable to consult a financial advisor before making any investment decision and read scheme related documents carefully.

14. What is the fund's investment strategy?
    
    

The investment objective of the Zerodha Silver ETF FoF is to seek capital appreciation over the long term by investing in units of the Zerodha Silver ETF. It's important to note that there is no assurance or guarantee that this objective will be achieved.

Refer Scheme Information Document (SID) for complete details.

15. Is a Demat account necessary to invest in the Zerodha Silver ETF FoF?

No, a Demat account is not necessary to invest in the Zerodha Silver ETF FoF.

16. What happens if my application for Zerodha Silver ETF FoF is rejected during the NFO?

If the application is rejected, the full amount will be refunded within 5 business days of the closure of NFO.

17. Zerodha Silver ETF FoF is suitable for what kind of investors?

Zerodha Silver ETF FoF may be suitable for following category of investors:

• Retail Investors: Those looking to invest in Silver without directly purchasing physical Silver. It provides an opportunity to benefit from Silver price movements without storage or purity concerns.
  
  
• Long-Term Investors: People looking for portfolio diversification with Silver. Due to its rising industrial demands.
• Investors with Demat or Non-Demat (SOA) Accounts: This scheme is available to all investors, regardless of whether they hold Dematerialized or Non-Dematerialized (Statement of Account) accounts.
  
  
• Corporate Investors: Those who are looking to enhance their Silver exposure in their treasuries.

18. Taxation of the Zerodha Silver ETF FoF

Zerodha Silver ETF FoF shall be subject to the following taxation norms:

Short term Capital Gains shall be triggered if the holding period of the investor under this scheme is up to 24 months at the time of redemptions. The gains will be taxed as per the tax slab of the investor (plus 4% cess and applicable surcharge(if any).

Long Term Capital Gains shall be triggered if the holding period of the investor exceeds 24 months at the time of redemptions. The Gains will be subject to 12.5% taxation.(plus 4% cess and applicable surcharge (if any).