Tata Asset Management announces the launch of four new schemes i.e. 2 Exchange Traded Funds (ETFs) & 2 Fund of Fund (FOF):
- Tata Gold ETF an open-Ended Exchange Traded Fund replicating / tracking domestic price of Gold. NFO opens from 2nd January 2024 - 9th January 2024
- Tata Gold ETF Fund of Fund, an open-ended fund of fund scheme investing in Tata Gold Exchange Traded Fund. NFO opens from 2nd January 2024 - 16th January 2024
- Tata Silver ETF an open-ended Exchange Traded Fund replicating / tracking domestic price of Silver. NFO opens from 2nd January 2024 - 9th January 2024
- Tata Silver ETF Fund of Fund an open-ended fund of fund scheme investing in Tata Silver Exchange Traded Fund. NFO opens from 2nd January 2024 - 16th January 2024
Investing in gold and silver aims to offer a compelling strategy for diversification of your portfolio and long-term stability. Gold's role as a hedge against currency devaluation, inflation, and market uncertainties, coupled with its scarcity and historical safe-haven status, helps you to preserve wealth effectively. Meanwhile, silver's surging demand in industries like EV technology and green energy, amidst a supply shortage, signals potential price appreciation. As silver is mostly a by-product, its scarcity and expanding industrial uses make it an appealing investment.
These funds will provide investors an opportunity to take exposure in gold and silver respectively, as an asset class with low transaction costs, high liquidity and low expense ratio, etc.
Speaking at the launch, Anand Vardarajan, Business Head - Institutional Clients, Banking, Alternate investments and Product strategy at Tata Asset Management said, "When you don't know the risk, diversify. When you know the risk, hedge it. Precious metals like gold and silver help investors in hedging their risk and also diversify their portfolios. It offers ability to hedge against inflation and currency fluctuation and at the same time, being differently co-related, it helps in providing hiding space when equity and debt markets turn volatile. If most of the Gold is above the ground and only less is to be unearthed, then this becomes a great asset class to be owned. Limited supply coupled with rising demand for gold makes a great case to have it in one's portfolio.
Silver has ornamental, decorative and also industrial use cases. Many emerging industries have seen rising use of silver and not surprisingly it is seen as the rising metal. Both gold and silver can make a compelling allocation in an investor's portfolio giving a balance of diversification and providing some hedge."