Diwali investment: Invesco launches silver ETF, FoF; ICICI Prudential opens BSE Power ETF NFO

With Diwali prompting investors to review their portfolios and explore new investment opportunities, mutual fund houses are rolling out schemes offering exposure to silver and the power sector, though both carry market-related risks. Invesco Mutual Fund has launched two silver-focused schemes, while ICICI Prudential Mutual Fund has opened a new exchange-traded fund tracking the power sector, giving investors additional options to gain exposure to commodities and sector-specific equities.

The new fund offers (NFOs) for Invesco India Silver ETF and Invesco India Silver ETF Fund of Fund (FoF) will remain open from October 27 to November 9. Meanwhile, the ICICI Prudential BSE Power ETF NFO opened on October 26 and will close on October 30, 2026.

Invesco's silver investment options

The Invesco India Silver ETF is an open-ended scheme that will invest predominantly in physical silver of 99.9% purity or higher. Its investment objective is to generate returns in line with the price performance of physical silver, subject to tracking error.

The Invesco India Silver ETF FoF will invest predominantly in units of the fund house's silver ETF. While investors need a demat account to trade the ETF on stock exchanges, the FoF offers an alternative through the mutual fund route without requiring a demat account.

Both schemes will be managed by Abhisek Bahinipati. The minimum lump-sum investment during the NFO is ₹5,000 for the ETF and ₹1,000 for the FoF, with additional investments permitted in multiples of ₹1.

The FoF will also offer systematic investment plan (SIP) facilities. The minimum investment is ₹20 for daily SIPs through digital platforms, ₹100 for weekly and monthly SIPs, and ₹300 for quarterly SIPs.

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An exit load of 1% will apply to FoF units redeemed or switched out on or before 15 days from allotment. No exit load will apply thereafter.

Silver has applications beyond jewellery and investment, including solar panels, electric vehicles, semiconductors and medical devices. However, investors will remain exposed to silver price volatility, while the ETF's returns may deviate from physical silver prices because of tracking error.

ICICI Prudential launches power ETF

The ICICI Prudential BSE Power ETF will track the BSE Power Index, comprising 17 companies spanning power generation, transmission, distribution, integrated utilities, power trading and electrical equipment.

The index delivered a compound annual growth rate (CAGR) of 20% over five years, 17% over three years and 8% over one year as of September 30, 2026, according to MFI Explorer data. These figures represent index performance, not returns generated by the new ETF.

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Utilities account for 59.59% of the index, while industrials constitute 40.41%. Large-cap stocks represent 75.57% and mid-cap stocks 24.42%. The top 10 constituents account for 78.90% of the index. Nishit Patel, Ashwini Bharucha and Venus Ahuja will manage the scheme.

The launch comes amid rising electricity demand and infrastructure investment. According to figures cited in the fund house's release, India's electricity consumption grew at an annual rate of 7.4% between FY21 and FY25, while peak power demand reached 271 GW in May 2026.

However, the power ETF carries sector-concentration risk, with returns influenced by regulatory changes, fuel costs, capital expenditure and stock valuations. Investors should review scheme documents and consider market risks before investing.

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