Investing in precious metals like silver can be a smart way to diversify your portfolio, but buying and storing physical silver isn’t convenient or cost-effective. That’s where the best Silver ETF in India comes in! Silver ETFs let you invest in silver without the hassle of storing metal or worrying about its purity. But with so many options, how do you know which silver ETF offers the best returns and lowest costs?
In this blog, We’ll dive into the top Silver ETFs for 2024, breaking down each one based on performance, expense ratios, and unique features.
If you're looking to invest in the best Silver ETF in India to diversify your portfolio with the strength of precious metals, this section is for you. Below is a table highlighting some silver funds that are performing well in India. We’ve included essential metrics like market cap and 1-year returns to help you make an informed choice.
| Best Silver ETFs in India | Market Cap (INR Cr) | 1-Year Return |
|---|---|---|
| Mirae Asset Silver ETF | 92.57 | 35.86 |
| Axis Silver ETF | 154 | 35.67 |
| ICICI Silver ETF | 4027 | 35.42 |
| Nippon India Silver ETF | 5057 | 35.02 |
| HDFC Silver ETF | 389.50 | 34.10 |
| Tata Silver ETF | 116 | 19.43 |
This table provides a quick snapshot of the best silver ETFs in India based on their market cap and historical performance, helping you choose the best option suited to your financial goals.
A Silver ETF (Exchange-Traded Fund) is an investment fund that primarily holds silver as its underlying asset. These ETFs are designed to mirror the price of silver in the market, making it easy for investors to gain exposure to silver without physically buying or storing the metal. Essentially, when you invest in the best Silver ETFs in India, you're buying shares in a fund that tracks the price of silver as it fluctuates.
In India, SEBI (Securities and Exchange Board of India) requires that silver held by these ETFs has a purity of 99.9%, ensuring it meets international commodity standards. Silver funds can be structured in different ways:
Investing in these ETFs is a simple way to add silver to your portfolio, offering liquidity and convenience while avoiding the challenges of storage and security associated with physical silver.
Choosing the best Silver ETFs in India can be a game-changer for investors looking to add precious metals to their portfolios. Each of these ETFs provides a unique mix of cost, returns, and reliability. Let’s dive into a detailed overview of the top-performing silver ETFs in India to help you make an informed decision.
Mirae Asset Silver ETF is one of the best silver ETFs in India; it is known for its focus on keeping expenses low while offering reliable silver exposure. Mirae Asset Mutual Fund manages this ETF and suits investors who prefer a hands-off approach. This ETF also targets those who want to diversify beyond gold and add silver to their portfolios without the burden of high expenses.
| 1Y Return (%) | 3Y Return (%) |
|---|---|
| 35.86 | 30.03 |
Axis Silver ETF stands out due to its competitive expense ratio and strong backing by Axis Mutual Fund. With a low-expense structure, this ETF suits new and experienced investors. Axis Silver ETF makes silver investments accessible and liquid, allowing investors to buy or sell their shares based on market conditions easily.
| 1Y Return (%) | 3Y Return (%) |
|---|---|
| 35.67 | 79.89 |
The ICICI Silver ETF is one of the best silver ETFs in India and India's most popular silver fund, and the robust management of ICICI Mutual Fund backs it. As per SEBI guidelines, it directly invests in physical silver, with a minimum purity of 99.9%. This ETF is a go-to choice for investors who want direct exposure to silver prices without worrying about storage or purity.
| 1Y Return (%) | 3Y Return (%) |
|---|---|
| 35.42 | 48.50 |
Nippon India Silver ETF, managed by Nippon India Mutual Fund, is known for offering competitive returns at an affordable cost. This ETF invests in physical silver and strictly adheres to SEBI’s guidelines, ensuring purity and safety. For those interested in gold and silver funds, Nippon India also offers diverse options in precious metals.
| 1Y Return (%) | 3Y Return (%) |
|---|---|
| 35.02 | 58.90 |
HDFC Silver ETF offers an easy route for investors seeking silver exposure as an asset class. Managed by HDFC Mutual Fund, this ETF is structured to offer stability, making it one of the best options for long-term investors. The fund maintains high standards of purity, and HDFC’s strong market reputation adds an extra layer of security.
| 1Y Return (%) | 3Y Return (%) |
|---|---|
| 34.10 | 80.98 |
Tata Silver ETF is a part of Tata Mutual Fund, a trusted name in the Indian investment landscape. This ETF focuses on maintaining a steady growth rate while keeping costs reasonable. Tata Silver ETF is known for its disciplined approach, making it a reliable choice for investors looking to invest in silver exchange-traded funds in India for the long term.
| 1Y Return (%) | 3Y Return (%) |
|---|---|
| 19.43 | NA |
| List of Top 10 Silver ETFs | 1 Year Return | Market Cap (INR Cr) |
|---|---|---|
| Nippon India Silver ETF | 35.02 | 5057 |
| ICICI Prudential Silver ETF | 35.42 | 4027 |
| Kotak Silver ETF | 35.93 | 777.03 |
| Aditya Birla Sun Life Silver ETF | 36.51 | 500.30 |
| HDFC Silver ETF | 34.10 | 389.50 |
| DSP Silver ETF | 38.50 | 265.98 |
| Axis Silver ETF | 35.67 | 154 |
| UTI Silver Exchange Traded Fund | 36.14 | 142.62 |
| Tata Silver Exchange Traded Fund | 19.43 | 116 |
| Mirae Asset Silver ETF | 35.86 | 92.57 |
| Edelweiss Silver ETF | 31.37 | 85.13 |
Investing in the best Silver ETFs in India offers a range of benefits that make them an attractive choice for both new and seasoned investors. Here’s a look at some key advantages:
Silver ETFs are funds that invest primarily in physical silver or silver futures, designed to track the price movements of silver in the market. When you invest in a Silver ETF in India, your money is pooled with other investors’ funds to purchase silver assets directly or through futures contracts.
The value of your ETF units reflects the current market price of silver, adjusting as the price of silver goes up or down. Since these ETFs are listed on stock exchanges, you can easily buy or sell units like regular stocks, making them highly liquid. This structure allows investors to gain exposure to silver prices without the hassle of storing or securing physical silver, offering a straightforward and cost-effective way to diversify with precious metals.
Silver and Gold ETFs offer exposure to precious metals but serve slightly different purposes in a portfolio. Silver exchange-traded funds are often more volatile and offer higher growth potential, while gold ETFs tend to provide stability and act as a safer hedge. If you're torn between silver and gold, consider diversifying across both, depending on your risk tolerance and investment goals. For more detailed information on gold ETFs, check out our article on the Best Gold ETFs in India.
| Feature | Silver ETFs | Gold ETFs |
|---|---|---|
| Volatility | Generally higher; silver prices are more volatile | Lower volatility; gold is traditionally stable |
| Growth Potential | Higher growth potential due to industrial demand | Steady growth, less impacted by industrial demand |
| Investment Role | Suitable for high-risk, high-reward strategies | Taxed as capital assets, based on the holding period |
| Tax Implications | Taxed as capital assets, based on holding period | Similar tax treatment as silver funds |
Both metals serve unique roles, so combining the best Silver ETFs in India and the Best Gold ETFs in India can help create a balanced, diversified portfolio.
Investing in Silver funds in India is easy and convenient. Just follow these simple steps:
Silver ETFs and Physical Silver offer ways to invest in this precious metal, but they have different purposes and unique pros and cons. Silver funds are more liquid, accessible, and convenient to trade, while physical silver gives you ownership of the actual metal, which some investors prefer. Here’s a quick comparison:
| Feature | Silver ETFs | Physical Silver |
|---|---|---|
| Liquidity | High; can be bought/sold on the stock exchange | Low; requires physical selling to liquidate |
| Storage & Security | No storage is needed; held electronically | Needs secure storage and incurs extra costs |
| Investment Cost | Lower cost; only expense ratio applies | Higher costs due to making, storage, and purity charges |
| Ownership | You own units that represent silver, not physical metal | Direct ownership of actual silver |
| Tax Efficiency | Taxed as capital assets, based on the holding period | Similar to tax but includes wealth tax in some cases |
Silver ETFs in India are a better choice if you're looking for ease and flexibility. But if you value direct ownership, physical silver might be more appealing.
Investing in the best Silver ETFs in India provides a convenient and cost-effective way to add precious metals to your portfolio without the hassle of storing physical silver. They offer transparency, accessibility, and liquidity, making them ideal for beginners and seasoned investors. With options to trade on the stock exchange, silver funds allow you to benefit from silver's price movements while enjoying the flexibility of easily buying and selling.
The top Silver ETFs in India for 2024 include ICICI Silver ETF, Nippon India Silver ETF, HDFC Silver ETF, Tata Silver ETF, Axis Silver ETF, and Mirae Asset Silver ETF. These funds are popular for their performance, low expense ratios, and efficient management, making them ideal choices for investors looking to add silver to their portfolios.
The long-term best Silver ETFs in India are ICICI Silver ETF and HDFC Silver ETF, which are strong options due to their proven track records and fund management expertise.
Silver ETFs offer exposure to silver prices without owning and storing silver physically. They are more liquid, easy to trade, and cost-effective, while physical silver requires secure storage and incurs additional fees.
Yes, you can trade Silver ETFs for short-term gains, as they are listed on stock exchanges. However, silver prices can be volatile, so it's advisable to have a strategy, especially if you're aiming for short-term returns.
The minimum investment is equivalent to the price of one unit of the ETF, which is generally affordable, making silver ETFs accessible to a wide range of investors.
They are taxed as capital assets. Short-term capital gains tax applies for holding periods under 3 years, which aligns with your income slab. Long-term capital gains tax with indexation benefits applies for holdings of 3 years or more.
Both Silver ETFs and Gold ETFs offer portfolio diversification benefits. Gold ETFs are often more stable, making them ideal for conservative investors, while silver offers higher growth potential with more volatility. For a balanced portfolio, consider a mix of both.
Disclaimer: This article is intended for educational purposes only. Please note that the data related to the mentioned companies may change over time. The securities referenced are provided as examples and should not be considered as recommendations
