As the Diwali investment season encourages portfolio reviews, two prominent mutual fund houses in India have launched new fund offers (NFOs) providing fresh avenues for investors. Invesco India has introduced schemes focused on silver, while ICICI Prudential Mutual Fund has opened an NFO for an exchange-traded fund (ETF) targeting the power sector.
The Invesco India Silver ETF and its associated Fund of Fund (FoF) are open for subscription from October 27 to November 9. Meanwhile, the ICICI Prudential BSE Power ETF NFO, which commenced on October 26, will conclude on October 30, 2026.
Invesco India's Silver Investment Options
Invesco India's new silver offerings aim to provide investors with exposure to the precious metal. The Invesco India Silver ETF is an open-ended scheme designed to invest predominantly in physical silver of at least 99.9% purity. Its objective is to mirror the price performance of physical silver, accounting for tracking error.
For investors seeking silver exposure without the need for a demat account, the Invesco India Silver ETF Fund of Fund (FoF) offers an alternative. This FoF will primarily invest in units of the Invesco India Silver ETF through the mutual fund route.
Both schemes are managed by Abhisek Bahinipati. The minimum lump-sum investment during the NFO period is ₹5,000 for the Silver ETF and ₹1,000 for the Silver ETF FoF, with subsequent investments in multiples of ₹1. The FoF also provides systematic investment plan (SIP) facilities, starting from ₹20 for daily SIPs via digital platforms, ₹100 for weekly and monthly SIPs, and ₹300 for quarterly SIPs. An exit load of 1% applies to FoF units redeemed within 15 days of allotment.
ICICI Prudential's Power Sector ETF
ICICI Prudential Mutual Fund has launched the ICICI Prudential BSE Power ETF, which will track the performance of the BSE Power Index. This index comprises 17 companies engaged across various segments of the power sector, including generation, transmission, distribution, integrated utilities, power trading, and electrical equipment manufacturing.
According to MFI Explorer data, the BSE Power Index has demonstrated strong growth, with 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. Utilities constitute 59.59% of the index, while industrials make up 40.41%. Large-cap stocks represent 75.57% and mid-cap stocks 24.42% of the index constituents.
The launch of this power sector ETF aligns with India's growing electricity demand and infrastructure investments. Official figures indicate India's electricity consumption grew at an annual rate of 7.4% between FY21 and FY25, with peak power demand reaching 271 GW in May 2026. The scheme is managed by Nishit Patel, Ashwini Bharucha, and Venus Ahuja.
Considering Investment Risks
While these new fund offers present diverse investment opportunities, prospective investors should be aware of inherent market risks. The Invesco Silver ETF's returns may deviate from physical silver prices due to tracking error, and silver prices themselves are subject to significant volatility. Similarly, the ICICI Prudential BSE Power ETF carries sector-concentration risk, with its performance influenced by regulatory changes, fuel costs, capital expenditure, and stock valuations within the power sector.
Investors are strongly advised to review the respective scheme documents thoroughly and consult with a qualified financial advisor before making any investment decisions.