Upcoming NFO: Mirae Asset Mutual Fund Files Draft for Silver ETF FOF

Mirae Asset Investment Managers (India) has filed a draft scheme information document for the Mirae Asset Silver ETF Fund of Fund (FOF).  

The proposed scheme is an open-ended fund of fund that will invest in units of the Mirae Asset Silver ETF. Units will be offered at a face value of ₹10 during the new fund offer (NFO), with dates to be announced.  

Investment Objective and Benchmark 

The scheme seeks to track the domestic price of physical silver, referenced to the LBMA silver daily spot fixing price.  

It is categorised as a domestic silver fund of fund under SEBI’s mutual fund classification framework. The scheme will follow a passive approach and will not take discretionary positions based on market conditions.  

Asset Allocation Framework 

Under normal circumstances, 95-100% of the portfolio will be invested in units of the underlying Mirae Asset Silver ETF. Up to 5% may be allocated to money market instruments, debt securities, or liquid mutual fund units for liquidity management.  

The draft states that the scheme will not invest in derivatives, overseas securities, securitised debt, securities lending, or structured obligations.  

Plans, Options and NAV Disclosure 

The scheme will offer Regular and Direct plans, each with Growth and Income Distribution cum Capital Withdrawal (IDCW) options.  

NAV will be calculated daily and disclosed by 10:00 am on the following business day. Units will be issued and redeemed at NAV-based prices on business days.  

Investment Minimums and Exit Load 

The minimum investment amount is ₹5,000 during the NFO and on an ongoing basis, with additional purchases allowed from ₹1,000.  

Systematic investment plans can start from ₹99. An exit load of 0.05% applies for redemptions within 15 calendar days, with no exit load thereafter.  

Costs, Expenses and Deployment Timeline 

The draft estimates recurring expenses of up to 1% of daily net assets, subject to regulatory limits. As a fund of fund, investors will bear expenses at both the FOF and underlying ETF levels. NFO-related expenses will be borne by the asset management company.  

Funds raised during the NFO are to be deployed within 30 business days, extendable by another 30 business days in specific cases.  

Read More: Union Mutual Fund Enters into SIF Segment with the Launch of Arthaya SIF Platform! 

Conclusion 

The draft document outlines the proposed structure, allocation limits, costs, and operational framework for the Mirae Asset Silver ETF FOF, pending regulatory approvals and final launch details. 

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.   
 
Mutual Funds Investments are subject to market risks, read all the related documents carefully before investing.