How can investors benefit from putting their money in the money?

ICICI Prudential Mutual Fund and Nippon India Mutual Fund are tapping into the latent demand for silver investments, with the recent launch of their silver exchange traded funds (ETFs) and funds of funds (FoFs). Other fund companies like DSP, HDFC and Mirae Asset will soon be offering their offerings. So, does an investment in silver bode well for the retail investor today? Analysts say yes, pointing to the metal’s weak but positive correlation with stocks. Chirag Mehta, senior fund manager-alternative investments at Quantum Mutual Fund, said Commercial standard that about 70 percent of silver’s use comes from industrial applications. When economic growth is high, increased demand pushes up its price. So while gold has a negative correlation with stocks, silver is more likely to work the other way around. While silver has fallen 12.5% ​​over the past year, experts expect it to start performing again in the coming months. The metal is trading at around Rs 60,000 per kg in major metropolitan cities, but Naveen Mathur, director of commodities and currencies, said Anand Rathi Shares and Stock Brokers Commercial standard that the metal could reach a price of around Rs 67,000 in the coming months.

Over the past decade, gold has definitely outperformed silver in terms of yield. Thus, experts suggest to consider silver investments only as an option in a basket of commodities. For those who plan to invest only in silver, experts suggest having a horizon of more than 10 years. Sanjay Kumar Singh of Business Standard explains more. For those who are considering investing in silver, you might benefit from an industrial recovery. We could allocate 5 to 10% of the pro-cyclical component of its portfolio to it. Long-term investors should take the systematic investment plan (SIP) route to take advantage of the volatility of silver.

Watch the video

Dear reader,

Business Standard has always strived to provide up-to-date information and commentary on developments that matter to you and have broader political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering has only strengthened our resolve and commitment to these ideals. Even in these difficult times resulting from Covid-19, we remain committed to keeping you informed and updated with credible news, authoritative views and cutting-edge commentary on relevant current issues.
However, we have a demand.

As we fight the economic impact of the pandemic, we need your support even more so that we can continue to provide you with more quality content. Our subscription model has received an encouraging response from many of you who have subscribed to our online content. More subscriptions to our online content can only help us achieve the goals of providing you with even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practice the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital editor

Comments are closed.