Silver ETF in India – What is Silver ETF?

The below table shows a list of Silver ETFs in India based on AUM, NAV, and minimum investment amount.

Introduction to Silver ETF India

ICICI Prudential Silver ETF FoF Direct – Growth

ICICI Prudential Silver ETF FoF Direct-Growth is a Gold/Precious Metals mutual fund scheme from ICICI Prudential Mutual Fund. This fund has been operational for 2 years and 8 months, having been launched on January 13, 2022.

ICICI Prudential Silver ETF FoF falls under the Flexi Cap Fund category with an AUM of ₹742.82 crores, a 5-year CAGR of 0%, an exit load of 1%, and an expense ratio of 0.12%. The SEBI risk category is Very High. Its asset allocation includes 99.68% in Mutual Funds and 0.32% in Cash & Equivalents.

Nippon India Silver ETF FoF Direct – Growth

Nippon India Silver ETF FoF Direct-Growth is a Gold/Precious Metals mutual fund scheme from Nippon India Mutual Fund. This fund has been operational for 1 year and 7 months, having been launched on February 3, 2022.

Nippon India Silver ETF FoF falls under the Flexi Cap Fund category with an AUM of ₹373.92 crores, a 5-year CAGR of 0%, an exit load of 1%, and an expense ratio of 0.25%. The SEBI risk category is Very High. Its asset allocation includes 99.76% in Mutual Funds and 0.24% in Cash & Equivalents.

SBI Silver ETF FoF Direct – Growth

SBI Silver ETF FoF Direct – Growth is a Gold/Precious Metals mutual fund scheme from SBI Mutual Fund. This fund has been operational for a few months, having been launched on July 11, 2024.

SBI Silver ETF FoF falls under the Flexi Cap Fund category with an AUM of ₹268.48 crores, a 5-year CAGR of 0%, an exit load of 1%, and an expense ratio of 0.25%. The SEBI risk category is Very High. Its asset allocation includes 100.04% in Mutual Funds and -0.04% in Cash & Equivalents (indicating rounding or estimation).

Aditya Birla Sun Life Silver ETF FoF Direct – Growth

Aditya Birla Sun Life Silver ETF FoF Direct-Growth is a Gold/Precious Metals mutual fund scheme from Aditya Birla Sun Life Mutual Fund. This fund has been operational for 2 years and 8 months, having been launched on January 13, 2022.

Aditya Birla Sun Life Silver ETF FoF falls under the Flexi Cap Fund category with an AUM of ₹138.87 crores, a 5-year CAGR of 0%, an exit load of 0.5%, and an expense ratio of 0.21%. The SEBI risk category is Very High. Its asset allocation includes 95.72% in Mutual Funds and 4.28% in Cash & Equivalents.

HDFC Silver ETF FoF Direct – Growth

HDFC Silver ETF FoF Direct-Growth is a Gold/Precious Metals mutual fund scheme from HDFC Mutual Fund. This fund has been operational for 1 year, having been launched on October 28, 2022.

HDFC Silver ETF FoF falls under the Flexi Cap Fund category with an AUM of ₹123.97 crores, a 5-year CAGR of 0%, an exit load of 1%, and an expense ratio of 0.27%. The SEBI risk category is Very High. Its asset allocation includes 99.94% in Mutual Funds and 0.06% in Cash & Equivalents.

Edelweiss Gold and Silver ETF FoF Direct – Growth

Edelweiss Gold and Silver ETF FoF Direct-Growth is a Gold/Precious Metals mutual fund scheme from Edelweiss Mutual Fund. This fund has been operational for 1 year, having been launched on September 14, 2022.

Edelweiss Gold and Silver ETF FoF falls under the FoFs – Gold category with an AUM of ₹113.96 crores, a 5-year CAGR of 0%, an exit load of 0.1%, and an expense ratio of 0.3%. The SEBI risk category is Very High. Its asset allocation includes 99.90% in Mutual Funds and 0.10% in Cash & Equivalents.

Motilal Oswal Gold and Silver ETFs FoF Direct – Growth

Motilal Oswal Gold and Silver ETFs FoF Direct – Growth is a Gold/Precious Metals mutual fund scheme from Motilal Oswal Mutual Fund. This fund has been operational for 11 months, having been launched on October 13, 2022.

Motilal Oswal Gold and Silver ETFs FoF falls under the FoFs – Gold category with an AUM of ₹85.50 crores, a 5-year CAGR of 0%, an exit load of 0%, and an expense ratio of 0.16%. The SEBI risk category is Very High. Its asset allocation includes 100.91% in Mutual Funds and -0.91% in Cash & Equivalents (indicating rounding or estimation).

Tata Silver ETF FoF Direct – Growth

Tata Silver ETF FoF Direct-Growth is a Gold/Precious Metals mutual fund scheme from Tata Mutual Fund. This fund has been operational for a few months, having been launched on January 19, 2024.

Tata Silver ETF FoF falls under the Flexi Cap Fund category with an AUM of ₹51.12 crores, a 5-year CAGR of 0%, an exit load of 0.5%, and an expense ratio of 0.07%. The SEBI risk category is Very High. Its asset allocation includes 98.97% in Mutual Funds and 1.03% in Cash & Equivalents.

Kotak Silver ETF FoF Direct – Growth

Kotak Silver ETF FoF Direct-Growth is a Gold/Precious Metals mutual fund scheme from Kotak Mahindra Mutual Fund. This fund has been operational for 5 months, having been launched on April 5, 2023.

Kotak Silver ETF FoF falls under the Flexi Cap Fund category with an AUM of ₹30.61 crores, a 5-year CAGR of 0%, an exit load of 0.5%, and an expense ratio of 0.14%. The SEBI risk category is Very High. Its asset allocation includes 100.09% in Mutual Funds and -0.09% in Cash & Equivalents (indicating rounding or estimation).

UTI Silver ETF FoF Direct – Growth

UTI Silver ETF FoF Direct-Growth is a Gold/Precious Metals mutual fund scheme from UTI Mutual Fund. This fund has been operational for 5 months, having been launched on April 21, 2023.

UTI Silver ETF FoF falls under the Flexi Cap Fund category with an AUM of ₹29.16 crores, a 5-year CAGR of 0%, an exit load of 1%, and an expense ratio of 0.14%. The SEBI risk category is Very High. Its asset allocation includes 97.61% in Mutual Funds and 2.39% in Cash & Equivalents.

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What Is Silver ETF in India?

A Silver ETF (Exchange Traded Fund) in India is a type of investment fund traded on stock exchanges that aims to track the price of physical silver. It provides investors with exposure to silver prices without the need to physically own, store, or secure the metal.

Silver ETFs are backed by physical silver held by the fund. Each unit of the ETF represents a specific quantity of silver. This allows investors to gain exposure to silver price movements through a simple, cost-effective investment vehicle.

These funds offer the liquidity of stocks combined with the benefits of silver investment. They’re particularly attractive to investors looking to diversify their portfolio with precious metals or hedge against economic uncertainties.

Features Of Best Silver ETF

The main features of the best Silver ETFs include high liquidity, low tracking error, cost-effectiveness, and transparency. These funds offer a convenient way to invest in silver without the complexities of owning physical metal.

• Liquidity: Silver ETFs can be easily bought and sold on stock exchanges during market hours, providing high liquidity.

• Tracking accuracy: The best Silver ETFs closely track the price of physical silver, minimizing tracking error.

• Cost-effective: ETFs generally have lower expense ratios compared to actively managed funds, making them a cost-effective way to invest in silver.

• Transparency: Silver ETFs disclose their holdings daily, providing transparency to investors about the underlying assets.

Silver ETF List Based on Expense Ratio

The table below shows the Silver ETF List based on the lowest to highest expense ratio.

Best Silver ETF In India Based on Exit Load

The table below shows the Best Silver ETF In India List based on exit load, i.e., the fee that the AMC charges investors when they exit or redeem their ETF units.

Factors To Consider When Investing In Silver ETF

The main factors to consider when investing in Silver ETFs include tracking error, liquidity, expense ratio, and fund size. It’s crucial to assess these aspects to ensure you choose an ETF that closely mirrors silver prices and offers cost-effective exposure.

• Tracking error: Look for ETFs with low tracking error, indicating they closely follow silver prices.

• Liquidity: Higher trading volumes generally indicate better liquidity, allowing easier entry and exit.

• Expense ratio: Lower expense ratios mean more of your investment goes towards actual silver exposure.

• Fund size: Larger funds often have better liquidity and may be more stable.

How To Invest In Silver ETF In India?

To invest in Silver ETFs in India, start by opening a demat account if you don’t already have one. You can do this through a broker like Alice Blue or other financial institutions. Once your account is set up, you can buy Silver ETF units just like you would buy stocks.

Research different Silver ETFs available in India, comparing their tracking error, expense ratios, and liquidity. Once you’ve chosen an ETF, you can place a buy order through your trading platform during market hours.

Consider using a Systematic Investment Plan (SIP) to invest regularly in Silver ETFs, which can help average out your purchase price over time. Remember to monitor your investment and rebalance your portfolio as needed to align with your overall investment strategy.

Impact of Government Policies on Silver ETF In India

Government policies can significantly impact Silver ETFs through regulatory changes, tax implications, and import/export regulations on physical silver. These policies can affect silver prices and, consequently, the performance of Silver ETFs.

For instance, changes in import duties on silver can influence its domestic price. Monetary policies affecting currency values can also impact silver prices, as silver is often seen as a hedge against currency depreciation. Stay informed about policy changes to understand their potential effects on your Silver ETF investments.

How Silver ETF Perform in Economic Downturns?

Silver ETFs often show resilience during economic downturns as silver is considered a safe-haven asset. In times of economic uncertainty, investors often turn to precious metals, potentially driving up silver prices and benefiting Silver ETFs.

However, silver also has industrial uses, which can be affected by economic slowdowns. This dual nature as both a precious and industrial metal can lead to complex price movements. Generally, Silver ETFs can provide portfolio diversification and potential stability during market volatility.

Advantages Of Investing In The Best Silver ETF?

The main advantages of investing in the best Silver ETFs include ease of investment, liquidity, lower costs compared to physical silver, and portfolio diversification. These funds offer a convenient way to gain exposure to silver price movements.

• Easy access: Silver ETFs allow investors to gain exposure to silver without the hassles of storing physical metal.

• Liquidity: ETFs can be easily bought and sold on stock exchanges during market hours.

• Cost-effective: ETFs generally have lower costs compared to buying, storing, and insuring physical silver.

• Diversification: Silver ETFs can help diversify an investment portfolio, potentially reducing overall risk.

Risks Of Investing In The Silver ETF?

The main risks of investing in Silver ETFs include market risk, tracking error risk, and counterparty risk. While these funds offer convenient exposure to silver, they’re subject to price volatility and other factors that can impact returns.

• Market risk: Silver prices can be volatile, and affected by various economic and geopolitical factors.

• Tracking error: The ETF may not perfectly track silver prices due to various factors, including fund expenses.

• Counterparty risk: There’s a small risk associated with the entity holding the physical silver backing the ETF.

• Currency risk: For international investors, currency fluctuations can impact returns when converted to their home currency.

Silver ETF GDP Contribution

Silver ETFs contribute to India’s GDP indirectly by facilitating investment in the precious metals sector. They provide a regulated, transparent avenue for silver investment, potentially attracting both domestic and foreign capital.

By offering an accessible way to invest in silver, these ETFs can stimulate activity in financial markets. However, the direct GDP contribution is limited as ETFs primarily track existing silver rather than driving new production or economic activity.

Who Should Invest in Silver ETF In India?

Investors looking to diversify their portfolio with exposure to precious metals should consider investing in Silver ETFs in India. They’re suitable for those seeking a hedge against economic uncertainties or currency fluctuations.

Silver ETFs can be appropriate for both short-term traders looking to capitalize on silver price movements and long-term investors aiming for portfolio diversification. However, as with any investment, it’s crucial to align Silver ETF investments with your overall financial goals and risk tolerance. Consult a financial advisor for personalized advice.

Silver ETF Funds – FAQs

Disclaimer: The above article is written for educational purposes, and the companies’ data mentioned in the article may change with respect to time The securities quoted are exemplary and are not recommendatory.