Edelweiss Silver ETF is the equity traded fund scheme offered by Edelweiss Mutual Fund. It is opened as NFO for now where investors can apply for the funds. The scheme will reopen for continuous sale after the allotment period. In this blog, we will look at what is Edelweiss Silver ETF, how to invest, asset allocation, objective, and exit loads in our All You Need to Know about Edelweiss Silver ETF.
What is Edelweiss Silver ETF?
Edelweiss Silver ETF is an open-ended exchange-traded fund that will replicate or track the performance of the domestic prices of silver. The fund is open for public subscription from November 16 to November 20. The scheme will then re-open for continuous sale from November 24, 2023.
Overview of Edelweiss Mutual Fund
Edelweiss Mutual Fund is one of the trusted mutual fund houses in India. It was registered with SEBI in 2008 and started its operation in 2009. It is managed by Edelweiss Asset Management Ltd, under the Edelweiss Group. Edelweiss Mutual Fund is the first fund house in India to launch the passive debt fund Bharat Bond ETF. It was also the first asset management company (AMC) to bring MSCI index to India.
Edelweiss Mutual Fund offers 51 mutual fund schemes spread across equity, debt, hybrid, and other categories. The fund house has a total assets under management (AUM) of Rs 1,19,848 crores (As of Feb 2023).
What kind of mutual fund is Edelweiss Silver ETF?
Edelweiss Silver ETF is an open-ended exchange-traded fund that will replicate the domestic prices of silver. The fund will allocate at least 95% of its funds to silver and silver-related instruments and the remaining per cent to debt and money market instruments.
Also read: Types of Mutual Funds in India
What is the main objective of Edelweiss Silver ETF?
Edelweiss Silver ETF’s primary investment objective is to achieve consistent returns in line with the performance of the physical silver in the domestic prices subject to the tracking error.
How will Edelweiss Silver ETF allocate its assets?
Here’s a tabular representation of the asset allocation for the Edelweiss Silver ETF:
|Silver and Silver Related Instruments
|Moderate to High
|Debt & Money Market Instrument
|Low to Moderate
Who can Invest in Edelweiss Silver ETF?
The following persons can invest in Edelweiss Silver ETF:
- Resident adult Indian individuals either singly or jointly (not exceeding three), or on an Anyone or Survivor basis;
- Karta of Hindu Undivided Family (HUF in the name of Karta);
- Partnership Firms in the name of any one of the partner (constituted under the Indian partnership law) & Limited Liability Partnerships (LLP);
- Minors (Resident or NRI) through parent / legal guardian;
- Schemes of Mutual Funds registered with SEBI, including schemes of Edelweiss Mutual Fund, subject to the conditions and limits prescribed by SEBI Regulations and the respective Scheme Information Documents;
- Companies, Bodies Corporate, Public-Sector Undertakings (PSU), Association of Persons (AOP) or bodies of individuals (BOI), and societies registered under the
- Societies Registration Act, 1860 (so long as the purchase of units is permitted under the respective constitutions);
- Banks, including Scheduled Bank, Regional Rural Bank, Co-Operative Bank, etc. & Financial Institutions;
- Special Purpose Vehicles (SPV) approved by the appropriate authority;
- Religious and Charitable Trusts, Wakfs, or endowments of private trusts and Private trusts (subject to receipt of necessary approvals as required & who are authorized to invest in Mutual Fund schemes under their trust deeds);
- Non-resident Indians (NRIs) / Persons of Indian origin residing abroad (PIO) on repatriation or non-repatriation basis;
- Foreign Institutional Investors (FIIs) registered with SEBI on fully repatriation basis;
- Provident / Pension / Gratuity/superannuation, such other retirement and employee benefits, and such other funds to the extent they are permitted to invest;
- Army, Air Force, Navy, and other para-military units and bodies created by such institutions;
- Scientific and Industrial Research Organisations;
- Multilateral Funding Agencies / Bodies Corporate incorporated outside India with the permission of the Government of India / Reserve Bank of India;
- Trustee, the AMC, their Shareholders or Sponsor, their associates, affiliates, and group companies may subscribe to Units under the Scheme;
- Overseas financial organizations which have entered into an arrangement for investment in India, inter-alia with a mutual fund registered with SEBI and which arrangement is approved by the Government of India.
- Insurers, insurance companies/corporations registered with the Insurance Regulatory Development Authority (subject to IRDA Circular (Ref: IRDA/F&I/INV/CIR/074/03/2014) dated March 3, 2014
- Any other category of individuals/institutions/body corporate etc., so long as wherever applicable they are in conformity with SEBI Regulations/other applicable Regulations/the constituent documents of the applicants.
Investment Criteria for Edelweiss Silver ETF
Investors can invest in Edelweiss Silver ETF with a minimum investment of Rs 5000 per plan/option. After the minimum investment, investors can invest in multiples of Re 1. There is no upper limit for the investment criteria.
How will the Edelweiss Silver ETF scheme benchmark its performance?
The scheme will benchmark its performance with the domestic price of silver basis the LBMA silver daily spot fixing price. The AMC reserves the right to change the benchmark for the evaluation if required to accentuate the performance of the scheme.
Who will manage Edelweiss Silver ETF?
The fund will be managed by:
- Ashish Sood: He is a CFA charter holder and also holds an MBA from Goa Institute of Management. He has over 8 years of experience covering sectors like BFSI, Mining, Commodities, and more. He also manages other funds under Edelweiss like Edelweiss Multi Asset Allocation Fund(Commodity Portion) and Edelweiss Gold ETF.
Are there any entry and exit loads in Edelweiss Silver ETF?
There is no entry load in the Edelweiss Silver ETF. This means investors do not have to pay anything to park their earnings in this mutual fund scheme. As for the exit load, it will be per say:
- For creation unit size: No “Exit Load” will be levied on redemptions made by investors directly with the fund in creation unit size.
- For other than creation unit size: Nil
Can NRI invest in Edelweiss Silver ETF?
Yes, NRIs can easily invest in Edelweiss Silver ETF after getting their Mutual Fund KYC done and linked to their NRO/NRE Bank accounts. They can invest in various mutual fund schemes and generate good returns in the long term. This helps NRIs to build a fund that can match their investment goals and secure their future for any long-term financial needs.
The FEMA Act, RBI rules, and SEBI guidelines govern the rules and regulations regarding NRI investments in mutual funds which is why it has a slightly different procedure than that of resident individuals. Keeping in check with the FEMA Act, the funds on offer for NRIs from the US & Canada to NRIs from other countries may vary at times.
How can NRIs invest in Edelweiss Silver ETF?
NRIs and OCIs can download the SBNRI app to invest in mutual funds from the country of their residence. Here are a few simple steps you need to take:
- Complete your NRI KYC: Type in your personal details and attach supporting documents, like:
- PAN Number
- Overseas address proof: Any – Water/electricity bills, postpaid mobile/internet bills, rent agreements, driving licenses, etc.
- Passport – front and back
- Passport size photograph
- Onboarding: After KYC, you need to share the following details to complete the onboarding process and start investing in mutual funds from Edelweiss Mutual Funds
- City and country of birth
- NRE/NRO bank account statement/ canceled cheque for the last 3 months
- Nominee details
How to Invest in Edelweiss Mutual Funds as NRI?
NRIs can now download the SBNRI App and choose to invest in different Edelweiss Mutual Funds for NRIs in India with ease. You can also get detailed investment advice from experts at SBNRI. Also, visit our blog and YouTube channel for more details.
SBNRI is an authorized Mutual Fund Distributor platform & registered with the Association of Mutual Funds in India (AMFI). ARN No. 246671. NRIs willing to invest in mutual funds in India can download the SBNRI App to choose from 2,000+ mutual fund schemes or can connect with the SBNRI wealth team to better understand Mutual Fund investments.
Can NRIs invest in Edelweiss Mutual Funds?
- Yes, NRIs can invest in Edelweiss Mutual Funds on a full repatriation and non-repatriation basis as long as they adhere to the Foreign Exchange Management Act (FEMA) guidelines. NRIs need to complete the KYC to invest in mutual funds in India.
How can NRI buy Mutual Funds from Edelweiss Mutual Funds?
- Step 1: Set up an NRI Account: As per FEMA guidelines, after attaining the NRI status, you can’t park your money in a regular resident savings account in India and need to open an NRE or NRO account. Once the account is activated, you can start investing.
- Step 2: Get Your KYC Done: You need to complete the KYC process before starting investment in Edelweiss mutual funds for NRIs in India.
Are Edelweiss Mutual Fund’s schemes safe to invest in?
- Mutual funds are subject to market conditions and all market-linked investments come with a degree of risk. However, you can choose from low-risk to high-risk mutual funds to invest in as per your risk appetite and investing goals.
Which Edelweiss Mutual Fund scheme is best for the short term?
- Generally, a short-term investment is ideal for up to 3 years. If you are planning short-term investment, consider Edelweiss Mutual fund debt funds for NRIs. If your investment is up to three months, Edelweiss Mutual Fund liquid funds for NRIs are ideal for you.
What is the taxation on Edelweiss Debt Mutual Funds?
- The debt mutual fund tax has been changed with effect from April 1, 2023, after the Budget 2023 brought certain amendments. Debt mutual funds will no longer be allowed to avail of indexation benefits from FY 23-24. Any gains made on debt mutual funds investment will now attract taxation on applicable slab rates of the investor’s income bracket.
What are Debt funds vs. Equity Funds?
- Debt funds are mutual funds that invest money into fixed-income securities, corporate bonds, treasury bills, commercial papers, and more. On the other hand equity funds invest the money into stocks/shares of the company.
Are Edelweiss debt mutual funds safer than Edelweiss equity mutual funds?
- Debt funds invest in fixed-income securities, corporate bonds, treasury bills, commercial papers, and more while equity funds invest in stocks/shares of the company. This makes debt funds a relatively safer option as an investment than equity funds.
Are Edelweiss equity mutual funds safer for NRIs?
- Equity mutual funds have high volatility and can be risky for investors. However, overseeing the returns generated by equity mutual funds for the past 15 years, these funds can be a great investment vehicle and offer great wealth-generation opportunities for NRIs.
Is Edelweiss equity mutual funds safer than FD?
- Fixed deposits have a risk-free fixed income and are safer than equity mutual funds. However, as per the returns and growth opportunity, equity mutual funds look to be a better investment option for investors, residents, and NRIs alike.
What is the Edelweiss liquid fund taxation for NRI?
- NRIs are liable to pay taxes on the capital gain earned from Liquid funds. The short-term capital gains for sell of liquid funds for a period under 3 years of holding are taxed at investor’s slab rates. After the Budget 2023 amendments, long-term capital gains won’t enjoy any indexation benefit and will be charged as per the investor’s slab rates removing the LTCG benefits altogether.
Can I invest from the USA in the Edelweiss Mutual Fund?
- Yes an NRI can invest from the USA in India in various mutual fund schemes offered by Edelweiss Mutual Funds for NRIs provided it complies with the FEMA Act, RBI guidelines, and SEBI guidelines.
Can NRI invest in SIP in Edelweiss Mutual Fund in India?
- Yes, an NRI can invest in India through the SIP route in Edelweiss Mutual Fund for NRI schemes. SIP stands for Systematic Investment Plan.