Silver ETFs in India: A Smart Way to Invest in Silver
Silver has long been considered a valuable investment asset, often used as a hedge against inflation and economic uncertainty. While physical silver comes with concerns like storage, security, and purity, Silver Exchange-Traded Funds (Silver ETFs) offer an easy, transparent, and efficient way to invest in silver.
In this guide, we’ll explore the best Silver ETFs in India, their benefits, and how you can invest in them.
What is a Silver ETF?
A Silver ETF is a type of exchange-traded fund that tracks the price of silver and is backed by physical silver stored in secured vaults. Investors buy units of the ETF, which represent a fixed quantity of silver, without the hassle of storing or securing the metal themselves.
Key Features of Silver ETFs:
✅ 100% Backed by Physical Silver – Each unit represents a certain amount of silver.
✅ High Liquidity – Can be easily bought and sold on stock exchanges.
✅ No Storage Issues – Unlike physical silver, no need for lockers or security.
✅ No Making Charges – Unlike silver jewelry, ETFs do not have additional costs.
✅ Tax Efficient – Eligible for long-term capital gains tax benefits.
List of Top Silver ETFs in India (2024)
1. Nippon India Silver ETF
- Ticker Symbol: NIPPONSILVER
- Launch Year: 2022
- Expense Ratio: ~0.40%
- AUM (Assets Under Management): ₹5,057 crore
- 1-Year Return: ~35.02%
- Description: One of the largest and most liquid silver ETFs in India, closely tracking global silver prices.
2. ICICI Prudential Silver ETF
- Ticker Symbol: ICICISILVER
- Launch Year: 2022
- Expense Ratio: ~0.45%
- AUM: ₹4,175 crore
- 1-Year Return: ~21.33%
- Description: Provides exposure to silver prices with minimal tracking error and strong liquidity.
3. Kotak Silver ETF
- Ticker Symbol: KOTAKSILVER
- Launch Year: 2022
- Expense Ratio: ~0.50%
- AUM: ₹713 crore
- 1-Year Return: ~31.47%
- Description: A reliable and cost-effective silver ETF with solid returns.
4. Aditya Birla Sun Life Silver ETF
- Ticker Symbol: ABSLSILVER
- Launch Year: 2022
- Expense Ratio: ~0.55%
- AUM: ₹450 crore
- 1-Year Return: ~27.81%
- Description: Provides an easy way to invest in silver with tax benefits.
5. HDFC Silver ETF
- Ticker Symbol: HDFCSILVER
- Launch Year: 2022
- Expense Ratio: ~0.50%
- AUM: ₹321 crore
- 1-Year Return: ~28.95%
- Description: A trusted name in investment, offering efficient silver price tracking.
How to Invest in Silver ETFs in India?
Investing in Silver ETFs is simple and can be done through:
1️⃣ Stock Market Platforms
Buy and sell Silver ETFs directly from the NSE and BSE using trading platforms like Zerodha, Groww, Upstox, ICICI Direct, HDFC Securities, etc.
2️⃣ Mutual Fund Apps
Some asset management companies offer direct investment options in Silver ETFs through their official platforms.
3️⃣ Demat Account Requirement
Since Silver ETFs trade on stock exchanges, you need a Demat and trading account to invest in them.
Silver ETF vs. Physical Silver vs. Silver Futures
| Feature | Silver ETF | Physical Silver | Silver Futures |
|---|---|---|---|
| Liquidity | High | Low (resale issues) | High (trading on MCX) |
| Storage Cost | No | Yes | No |
| Purity Issues | No | Yes | No |
| Tax Benefits | Yes (after 3 years) | No | Yes |
| Volatility | Moderate | Moderate | High (leveraged trading) |
| Investment Size | Flexible | Large capital required | High risk due to leverage |
📌 Conclusion: If you want a safe, liquid, and cost-effective way to invest in silver, Silver ETFs are the best option. However, if you have a higher risk appetite, silver futures could offer greater short-term opportunities.
Final Thoughts: Should You Invest in Silver ETFs?
Silver ETFs are an excellent investment choice for individuals who:
✔ Want to diversify their portfolio with precious metals.
✔ Prefer a secure and easy-to-trade silver investment.
✔ Are looking for tax-efficient silver investments.
✔ Want to avoid issues like storage and making charges.
📢 Pro Tip: If you’re planning to invest in Silver ETFs, compare expense ratios, liquidity, and tracking efficiency before making a decision. Nippon India Silver ETF and ICICI Prudential Silver ETF are among the most liquid choices in the Indian market.
FAQs on Silver ETFs in India
1. Can I convert Silver ETFs into physical silver?
No, Silver ETFs cannot be converted into physical silver. They are designed for investment and trading purposes only.
2. Are Silver ETFs taxed in India?
Yes, Silver ETFs are subject to capital gains tax. Long-term gains (held over 3 years) are taxed at 20% with indexation benefits, while short-term gains are taxed as per your income tax slab.
3. Is a Demat account required for Silver ETFs?
Yes, you need a Demat and trading account to buy and sell Silver ETFs in India.
4. Are Silver ETFs better than physical silver?
Yes, Silver ETFs are better because they have no making charges, storage costs, or purity issues and are easier to sell.
5. What is the best Silver ETF in India?
Nippon India Silver ETF and ICICI Prudential Silver ETF are among the most liquid and efficient Silver ETFs in India.
🔹 Silver ETFs provide a simple, cost-effective, and tax-efficient way to invest in silver without the hassle of storing physical silver. Whether you are a short-term trader or a long-term investor, Silver ETFs can be an ideal way to diversify your portfolio and hedge against market risks.
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