Upcoming NFO: The Wealth Company Mutual Fund Filed Draft for Silver ETF

The Wealth Company Mutual Fund has submitted draft documents for a Silver Exchange Traded Fund (ETF).  

The scheme is designed as an open-ended fund that will mirror domestic silver prices before costs. The documents outline the structure, rules and operational details required for the product’s launch.  

Portfolio Structure 

The proposed allocation shows that most of the fund, 95% to 100%, will be held in physical silver and eligible silver-related instruments.  

Exchange Traded Commodity Derivatives (ETCDs) linked to silver may be used, but exposure is capped at 10% of net asset value unless the position results in physical delivery. The remaining 0% to 5% will be kept in short-term debt and money market instruments to manage liquidity.  

The physical holding will be in 30 kg silver bars with 999 purity, meeting LBMA Good Delivery Standards. Any weight variation during transactions will be settled through adjustments in the cash component. 

Buying and Selling Units 

Once cleared, the ETF will be listed on the NSE and BSE. Investors will be able to buy and sell units on these exchanges during normal trading hours.  

Market Makers and Large Investors can transact directly with the fund, but only in blocks called “Creation Unit Size”. This size is fixed at 30,000 units and multiples of it. Retail participation will happen through the exchanges.  

The scheme does not offer separate plans or options. Transaction charges have been removed following SEBI’s August 2025 circular, while stamp duty stays at 0.005%. 

NAV and Operations 

The daily NAV will be calculated based on the value of silver, cash, liabilities and accrued income. It will be published before 9 a.m. on the next business day on both the AMC and AMFI websites.  

The documents state that redemption payouts must be completed within three working days, except under conditions where extended timelines are permitted.  

Read More: Angel One Nifty Total Market ETF: HDFC Bank Leads Portfolio With 7.26% Weight! 

Conclusion 

The draft filing outlines the core structure of the upcoming Silver ETF. The launch date will depend on regulatory review and final approvals. 

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 Fund Investments are subject to market risks, read all the related documents carefully before investing.