The Edelweiss Silver ETF is an exchange-traded fund that aims to mirror the performance of physical silver in domestic markets, offering investors a straightforward avenue to incorporate silver into their investment portfolios.
Key Details:
- Investment Objective: To generate returns corresponding to the performance of physical silver in domestic prices, subject to tracking error.
- Net Asset Value (NAV): As of October 17, 2024, the NAV is ₹93.1573.
- Assets Under Management (AUM): The fund’s AUM stands at ₹71 crore as of September 30, 2024.
- Expense Ratio: The fund has an expense ratio of 0.39%.
- Risk Level: Classified under the ‘Very High’ risk category.
Portfolio Allocation:
As of September 30, 2024, the fund’s investments are allocated as follows:
- Commodities: 97.28%
- Cash & Cash Equivalents: 2.55%
- Debt: 0.17%
Edelweiss silver ETF Share Price
As of November 14, 2024, the Edelweiss Silver ETF (ticker: ESILVER) was trading on the National Stock Exchange (NSE) at ₹88.75 per unit.
Recent Performance:
- Previous Close: ₹91.63
- Percentage Change: Decreased by 3.14% from the previous closing price
52-Week Range:
- High: ₹100.80
Who is the Fund Manager of Edelweiss Silver ETF?
The Edelweiss Silver ETF is managed by Edelweiss Asset Management Limited. While specific details about the individual fund manager for this ETF are not readily available, the fund house ensures that experienced professionals oversee its operations. For more detailed information, you can visit the official Edelweiss Mutual Fund website.
Fund Managers:
- Bhavesh Jain: MMS (Finance) from Mumbai University; previously associated with Edelweiss Securities Limited as an SGX Nifty Arbitrage Trader
- Dhwanil Lahoti: B.E. (Electronics & Communication) from Mumbai University and MMS (Finance) from N.L. Dalmia Institute of Management Studies; prior experience includes roles in equity research and portfolio management
Taxation:
- Short-Term Capital Gains (STCG): For investments made on or after April 1, 2023, and sold up to March 31, 2025, the entire gain is added to the investor’s income and taxed according to the applicable slab rate.
- Dividends: Added to the investor’s income and taxed according to their respective tax slabs.
Considerations for Investors:
- Diversification: Incorporating silver into an investment portfolio can provide diversification benefits and act as a hedge against inflation.
- Volatility: Silver prices can be highly volatile, influenced by various economic and geopolitical factors. Potential investors should assess their risk tolerance before investing.
- Tax Implications: Investors should be aware of the tax treatment of gains from this ETF, as it may differ from other investment vehicles.
Conclusion:
The Edelweiss Silver ETF offers a convenient avenue for investors seeking exposure to silver. However, given the inherent volatility and high-risk classification, it is essential for investors to align this investment with their financial goals and risk appetite. Consulting with a financial advisor before investing is advisable.
Edelweiss Silver ETF Top Holdings
The Edelweiss Silver ETF is primarily designed to track the performance of physical silver in the domestic market. As such, its holdings predominantly consist of physical silver, with minimal allocations to other asset classes.
Portfolio Allocation (as of September 30, 2024):
- Commodities (Physical Silver): 97.28%
- Cash & Cash Equivalents: 2.55%
- Debt Instruments: 0.17%
This allocation underscores the fund’s primary focus on silver, aiming to closely mirror the metal’s price movements. The small percentages in cash and debt instruments are typically maintained to manage liquidity and operational expenses.
Edelweiss Silver ETF Returns
The Edelweiss Silver ETF is designed to mirror the performance of physical silver prices in the domestic market. Below is a summary of its performance since inception:
| Time Period | Returns |
| 1-year | 22.58% |
| Since Inception | 19.78% |
As of January 8, 2025, the Edelweiss Silver ETF has delivered a 1-year return of 22.58%.
Since its launch in November 2022, the fund has achieved an annualized return of 19.78%.
Strengths of Edelweiss Silver ETF
1) Direct Exposure to Silver – The ETF provides a simple and cost-effective way to invest in physical silver without the hassle of storage or purity concerns.
2) Inflation Hedge – Silver is a store of value and can act as a hedge against inflation and currency depreciation.
3) Portfolio Diversification – Adding silver to a portfolio can reduce overall risk, as commodities often have a low correlation with equities.
4) High Liquidity – The ETF trades on stock exchanges, allowing easy buying and selling compared to physical silver.
5) SEBI-Regulated – Being a mutual fund product, it is regulated by SEBI, ensuring transparency and investor protection.
6) No Storage Hassle – Unlike physical silver, investors don’t need to worry about storage, security, or insurance costs.
Risks of Edelweiss Silver ETF
1) Price Volatility – Silver prices can be highly volatile due to global demand-supply dynamics, interest rates, and economic conditions.
2) No Fixed Returns – Unlike bonds or fixed deposits, returns depend entirely on silver price movements, which can be unpredictable.
3) Currency Risk – Since silver is priced internationally, fluctuations in the USD-INR exchange rate can impact ETF returns.
4) Tracking Error – The ETF aims to mirror silver prices, but small tracking errors can occur due to fund expenses and liquidity issues.
5) Tax Implications – Gains are taxed as capital gains, and silver ETFs do not receive the favorable tax treatment that equity mutual funds enjoy.
6) Market Liquidity – While ETFs are liquid, their trading volumes can vary, affecting buying and selling prices on exchanges.
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