Silver has always been part of India’s story. But today, silver is not just a glittering metal in your drawer, it is becoming a smart investment option too and the credit goes to its growing use in industries like solar energy, electronics, and electric vehicles, silver is in higher demand than ever. At the same time, it continues to be seen as a safe haven asset, helping investors protect their money during uncertain times.
The only catch? Buying and storing physical silver is not convenient. That is why more and more investors have started buying ETFs (Exchange Traded Funds). These funds let you invest in silver without the hassle of owning it physically, no storage, no purity worries, and no making charges.
In this blog, we will look at the best Silver ETFs in India, see how they work, and understand why they are becoming such a popular choice among investors.
What are Silver ETFs
Think of a Silver ETF (Exchange Traded Fund) as a simple way to invest in silver, without ever having to buy or store physical silver. Instead of holding silver coins or bars, you buy units of a fund that tracks the price of silver in the market. These ETFs are traded on stock exchanges, just like regular shares. So, when the price of silver goes up or down, the value of your ETF units moves accordingly. Behind the scenes, the fund holds physical silver in secure vaults. So we can say that this is the digital way of holding silver. All you need is a Demat account to get started. In short, Silver ETFs make it easy to invest in silver.
List of Best Silver ETFs
| Company | Market Cap. (crores) | Market Price | Expense Ratio % | 52 Week High | 52 week Low |
|---|---|---|---|---|---|
| ICICI Prudential Silver ETF | ₹9,481 | 146.02 | 0.40 | ₹190 | ₹86.01 |
| ABSL Silver ETF | ₹1,580 | ₹144.67 | 0.35 | ₹191.65 | ₹86.30 |
| DSP Silver ETF | ₹1,450 | ₹141 | 0.40 | ₹183 | ₹83.30 |
| Mirae Silver ETF | ₹377 | ₹143 | 0.34 | ₹185.70 | ₹83.55 |
| Axis Silver ETF | ₹638 | ₹144.72 | 0.37 | ₹194.80 | ₹85.51 |
Read Also: Types of ETFs in India: Find the Best for Your Investment
1. ICICI Prudential Silver ETF
ICICI Prudential Silver ETF is a simple way to invest in silver without having to buy or store it physically. It tracks domestic silver prices and trades on the NSE so you can easily buy or sell anytime the market is open. With a low expense ratio of 0.40% and AUM of around ₹9,481 crore, it’s a popular choice for investors. The ETF has delivered strong returns of roughly 69% in the past year.
2. ABSL Silver ETF
If you are looking to invest in silver without holding bars or coins, the ABSL Silver ETF is a great choice. It tracks the price of domestic silver and currently charges a low expense ratio of around 0.35%. Launched in early 2022, it already has an AUM of about ₹1,580 crore. The fund aims for returns that mirror silver’s domestic price movement
3. DSP Silver ETF
The DSP Silver ETF was launched in August 2022, it tracks the price of silver in India and comes with an expense ratio of about 0.40%. The fund manages around ₹1,450 crore in assets and has given returns of roughly 69% over the past year.
4. Mirae Silver ETF
The Mirae Asset Silver ETF was launched in June 2023. The fund has an expense ratio of about 0.34%, which makes it one of the more cost-efficient options in this category. Its AUM is around ₹377 crore, and it invests nearly 97% directly in silver, giving you pure exposure to the metal.
5. Axis Silver ETF
Axis Silver ETF was launched in September 2022, and invests about 97- 98% in actual silver. With an expense ratio of around 0.37% and an AUM of ₹638 crore, it has become a popular choice for investors looking for pure silver exposure. The ETF has delivered strong one-year returns of around 69%, though silver can be a bit volatile.
Read Also: How to Invest in ETFs in India – A Beginner’s Guide
Things to Consider Before Investing
Before you add a Silver ETF to your portfolio, it is important to know the sides of the coins. Silver can be a good investment, but like everything in the market, it has its ups and downs. Here are a few things to keep in mind,
1. Silver prices can be unpredictable
Silver does not always move in a straight line. Its price depends on both industrial demand and global economic trends, so it can rise sharply, or fall just as fast.
2. ETFs do not always match silver prices exactly
Every Silver ETF tries to track the price of silver, but there can be small differences. This is called a tracking error, and while it is usually minor, you should be aware.
3. Check the fund’s costs
Like all ETFs, Silver ETFs charge a small management fee known as an expense ratio. A lower expense ratio means less of your return goes toward fees, so always compare before you invest.
4. Make sure it is easy to buy and sell
Choose an ETF that has good trading volume and enough liquidity. This makes it easier to enter or exit your investment without big price gaps.
5. Think long term
Silver is not a quick-profit asset. Prices may stay quiet for a while before they move up again, so it’s better suited for investors who can hold it for a few years.
6. Understand the tax part
If sold within a year, silver ETFs are treated as STCG and subject to slab rates; if not, they are treated as LTCG and subject to 12.5% taxation without indexation.
Read Also: How to Invest in Silver in India?
Conclusion
Silver ETFs have made investing in silver simple. You do not need to buy coins or bars or worry about storage, you are just a few clicks from being a silver investor! Silver ETFs are a great way to add some sparkle to your portfolio, hedge against inflation, and benefit from silver’s growing industrial use in areas like electronics and renewable energy. Keep in mind to check a few key things before you invest like the fund’s expense ratio, liquidity, and tracking error. Most importantly, be patient. Silver can have phases, but over time, it can be a good addition in your investment journey.
Frequently Asked Questions (FAQs)
Are Silver ETFs safe?
Yes. They are regulated by SEBI and backed by physical silver stored safely in vaults.
Do I need a Demat account to invest?
Yes, you will need a Demat and trading account because Silver ETFs are bought and sold on the stock exchange.
How much should I invest in Silver ETFs?
Keep it moderate which is around 5–10% of your total portfolio is a healthy range for most investors.
What affects silver prices?
A mix of industrial demand (especially from electronics and solar), inflation trends, and global economic parameters, particularly movements in gold and the US dollar.
Is silver good for long-term investing?
Definitely! Silver may fluctuate in the short term but f you stay patient, it can add both stability and diversification to your portfolio.
