DSP Mutual Fund has launched the DSP Silver ETF Fund of Fund, a new open-ended scheme that allows investors to gain exposure to silver through a mutual fund structure. This Fund of Fund will primarily invest in DSP Silver ETF units, offering returns that mirror the performance of physical silver in domestic markets.
The launch comes as silver continues to play a critical role in industries like electronics, automotive, and jewelry. With rising demand driven by the global shift towards renewable energy, silver’s role in the production of solar panels, electric vehicles (EVs), and 5G networks is expected to grow. As the supply of silver remains limited, a consistent supply deficit is expected to persist, which could potentially drive prices higher. For Indian investors, currency depreciation may further enhance returns, as silver is priced in USD but traded in INR. “The DSP Silver ETF Fund of Fund simplifies investing in silver without the need for a demat account. It offers systematic investment options via SIPs and the flexibility to redeem units at any time,” said Diipesh Shah, Fund Manager.
In Guwahati, where investment in commodities like gold and silver has traditionally been strong, this new ETF provides an accessible alternative for local investors seeking diversification and long-term growth in precious metals. With silver’s relatively undervalued position compared to gold, many investors in Guwahati are expected to explore this new avenue for portfolio expansion.