Motilal Oswal AMC launches Gold and Silver ETFs FoFs, NFO opens next week

Motilal Oswal Asset Management Company (MOAMC) has announced the launch of Motilal Oswal Gold and Silver ETFs FoFs, with an objective to generate returns by investing in units of Gold ETF and Silver ETF. The new fund offer (NFO) will open next week on Monday, 26th September 2022 and closes on 7th October 2022.

The scheme shall generate returns by investing in units of Gold and Silver ETFs; the daily weights shall be market driven with the starting (NFO) allocation of 70:30. The maximum weight is capped at 90%, subject to quarterly review. “The initial higher allocation to Gold is on account of it having higher economic value and being highly liquid. Additionally, it is relatively more stable as compared to silver,” the fund house said in the release. Indicative Base Total Expense Ratio of the funds: Regular – 0.50%, Direct – 0.15%. The date of allocation will be 13th October 2022.

“Gold and silver have been preferred assets for Indian house holds for ages. These precious metals had been acquired and kept in the physical forms. However, we are witnessing high inflation around the world. Gold is a hedge against inflation, protects against the erosion of wealth, and acts as a store of value in such times. Even, the world’s elite turn to precious metals to protect their fortunes, as both metals never lose its value. Apart from investment, jewelry & silverware, Silver has major industrial applications including green technologies,” said Navin Agarwal, MD & CEO, Motilal Oswal Asset Management Company Ltd.

The Minimum Application amount for Motilal Oswal Gold & Silver ETFs FOFs is Rs. 500/- and in multiples of Re. 1/- thereafter. On ongoing basis investor can purchase/redeem units of the Scheme through financial advisor or by log-in to Further, the minimum application amount for ETF FOFs is 500/- & in multiples of Re.1/- thereafter.

Pratik Oswal, President – Passive Business, Motilal Oswal Asset Management Company Ltd said, “With an objective to bring new investment opportunities, Motilal Oswal AMC has launched the Gold and Silver ETFs FOFs. This offers a huge diversification mix as both Gold and Silver have a low correlation to equities and thus act as a good diversifier. Both metals offer good downside protection and tend to outperform in bear markets. While Silver tends to outperform when the market is recovering from a bear phase. With this scheme, the investors will be able to mitigate risks against the market volatility while enjoying the portable wealth and rising economic values.”

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