Bandhan Silver ETF NFO Opens on October 13, 2025

The Bandhan Silver ETF offers investors an opportunity to participate in the domestic silver market by investing in a fund that tracks the price of physical silver. Managed by Bandhan Mutual Fund, this exchange-traded fund aims to generate returns corresponding to the domestic silver price before expenses and tracking errors. It opens for subscription on October 13, 2025 and closes on October 15, 2025, with a minimum investment of ₹1,000. The scheme carries no exit load and follows a growth-oriented structure. Investors can buy units on stock exchanges or directly with the AMC in specified cases. This NFO provides a transparent, cost-effective, and regulated way to gain exposure to silver as a commodity.

Key Features of  Bandhan Silver ETF

• Open Date: October 13, 2025
• Close Date: October 15, 2025
• Exit Load: Nil
• Minimum Investment Amount: ₹1,000

Objective of Bandhan Silver ETF

The primary objective of the Bandhan Silver ETF is to generate returns that closely correspond to the domestic price of silver, before expenses and tracking errors, by investing directly in physical silver and related instruments. However, there is no assurance that the objective will be fully achieved, as returns depend on the silver market’s performance.

Investment Strategy of Bandhan Silver ETF

• The scheme will primarily invest 95–100% of its assets in physical silver and related instruments.
• A small portion (0–5%) may be invested in debt and money market instruments for liquidity.
• The fund aims to closely track domestic silver prices, minimising tracking errors.
• Direct exposure to the metal ensures a transparent and efficient price correlation.
• The fund follows a passive investment strategy, avoiding active trading risks.

Risks Associated with Bandhan Silver ETF

• Price Volatility: Silver prices can fluctuate sharply due to changes in global demand, currency rates, and economic trends.
• Tracking Error: There may be a difference between the fund’s returns and the actual price movement of silver.
• Liquidity Risk: Limited trading volume on exchanges could affect buying or selling efficiency.
• Regulatory and Taxation Risks: Changes in government policies or taxation rules may impact returns.
• Market Risk: Broader market conditions and investor sentiment may influence ETF performance.

Risk Mitigation Strategy by Bandhan Silver ETF

The NFO employs a diversified asset allocation approach by maintaining the majority of its exposure in physical silver, ensuring direct linkage with market prices. Tracking error is managed through efficient portfolio rebalancing and regular monitoring of silver price movements. Additionally, the fund invests a small portion in liquid debt instruments to handle short-term redemption needs and reduce volatility. Compliance with SEBI guidelines further enhances transparency and investor protection.

What Type of Investor Should Invest in Bandhan Silver ETF?

• Investors seeking diversification beyond equity and debt.
• Those looking for inflation-hedged and commodity-based returns.
• Suitable for medium to long-term investors with a moderate risk appetite.
• Ideal for investors who prefer exchange-traded exposure to silver rather than holding it in physical form.

Where Will the Bandhan Silver ETF Invest?

• 95–100% in physical silver and related instruments.
• 0–5% in debt and money market securities for liquidity and operational efficiency.
• Investments designed to closely mirror the domestic silver price performance.