Now along with gold, you can invest money in silver ETFs without risk, know what are the rules?

Silver ETFs: With the introduction of rules for Silver Exchange Traded Funds (ETFs), investors will now be able to invest in silver in a more liquid manner and this will help them in diversifying their portfolio. Market experts have expressed this opinion. The Securities and Exchange Board of India (SEBI) has issued the operating norms for silver ETFs just a few days back. Under this, such investment scheme will have to invest at least 95 percent in silver and silver related products. These norms will be effective from December 9, 2021.

You can invest in Silver ETFs
Let us tell you that at present, mutual fund units are only allowed to offer gold ETFs, but with the introduction of new provisions, the way for silver ETFs has also been opened.

Know what is the opinion of experts?
Swapnil Bhaskar, Head of Strategy, Neo, said, “Now people will be able to keep silver by investing in silver ETFs. Since it is a highly regulated product, investors will be sure about its purity. They do not get such assurance when they take silver from the open market.

Preeti Rathi Gupta, founder, women’s financial platform LXME, said, “Investors will now be able to invest in silver in a more liquid manner than traditional modes of investment.” Later silver is also kept in the category of precious metal.

Investing in Silver will be easy
Hemen Bhatia, Deputy Head, ETFs, Nippon Life India Asset Management Ltd., said, “It will become very convenient for investors to invest in silver as a commodity in a transparent manner after gold.”

Will be put on the website of NAV
As per the rules, the price of silver in the Silver ETF Scheme will be benchmarked on the basis of the daily spot price of silver of the London Bullion Market Association or LBMA. The Net Asset Value (NAV) of such ETFs will be posted on the website of the AMC. With this move, investors will get more realistic pricing of the precious metal.

rules are like gold
These norms are in line with the existing regulatory framework for gold ETFs, as SEBI continues the practice of holding 99.9 per cent pure silver bars for AMCs themselves through LBMA. This will allow retail investors to invest in silver ETFs without worrying about purity, risk, storage and insurance.

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