With the introduction of norms for silver exchange traded funds (ETFs), investors will be able to invest in silver in a more liquid manner and can help in diversification of the portfolio, experts said on Sunday. The Securities and Exchange Board of India (Sebi) came out with operating norms for silver ETF, whereby such scheme will have to invest at least 95 per cent in silver and silver-related instruments. The norms will be effective from December 9, 2021. Currently, Indian mutual funds are allowed to launch ETFs tracking on gold. “Now people will be able to hold silver commodity by investing into silver ETF. Since it is a highly regulated product, investors will be certain about its purity unlike when they buy silver from open market,” said Swapnil Bhaskar, Head of Strategy, Niyo-- a neo-banking platform for millennials to invest.

 

Priti Rathi Gupta, Founder, LXME -- financial platform for women -- said “now investors will be able to invest in silver in a more liquid manner compared to the traditional methods of investing in silver.” Also, this will help in diversification of the portfolio as silver has been a precious metal, after gold, she said. “It will become very convenient for investors to have exposure to silver as a commodity in a transparent manner, in addition to their exposure to gold,” Hemen Bhatia, Deputy Head - ETF, Nippon Life India Asset Management Ltd, said.