Silver has always had a special place in our lives, from family gifts to festive silver coins, but lately, it has been making headlines for a different reason. It is no longer just a glittery metal to own; it is gradually becoming a smart way to invest. With the rise of electric vehicles, solar panels, and new-age technologies, silver’s demand is increasing across the world.
The good news is that you do not need to buy physical silver to be part of this trend. Silver mutual funds let you invest in silver’s price movement, right from your phone or laptop.
In this blog, we will walk you through what silver mutual funds are, why they are becoming so popular, and the best ones to consider in India for 2025, along with a few simple points to look for before you invest.
What are Silver Mutual Funds?
Silver Mutual Funds are an easy way to invest in silver without buying or storing the metal for real. Instead of dealing with physical silver, these funds put your money into Silver Exchange Traded Funds (ETFs), which track the daily market price of silver in India.
So, when silver prices go up, the value of your investment rises too, and when they fall, your fund’s value may dip slightly. The big advantage is convenience, no worries about purity, safety, or storage. You get to benefit from silver’s price movements in a completely digital manner.
List of Best Silver Mutual Funds:
| S. No | Funds | Minimum Investment | Expense Ratio (%) | Exit Load | 6 Mth Ret (%) | 1 Yr Ret (%) |
|---|---|---|---|---|---|---|
| 1 | Aditya Birla Sun Life Silver ETF FoF – Regular Plan | 100 | 0.3 | 0.5 | 54.83 | 61.78 |
| 2 | Axis Silver FoF – Regular Plan | 5,000 | 0.16 | 0.25 | 51.1 | 59.7 |
| 3 | HDFC Silver ETF FoF – Regular Plan | 100 | 0.23 | 1 | 51.8 | 60.1 |
| 4 | ICICI Prudential Silver ETF FoF | 100 | 0.12 | 1 | 51.8 | 59.8 |
| 5 | Kotak Silver ETF FoF – Regular Plan | 100 | 0.14 | 0.5 | 52.2 | 60.6 |
| 6 | Nippon India Silver ETF FoF – Regular Plan | 100 | 0.27 | 1 | 52.53 | 60.5 |
| 7 | SBI Silver ETF FoF – Regular Plan | 5,000 | 0.3 | 1 | 53.2 | 61.5 |
| 8 | Tata Silver ETF FoF – Regular Plan | 5,000 | 0.2 | 0.5 | 49.5 | 58 |
| 9 | UTI Silver ETF FoF – Regular Plan | 100 | 0.15 | 1 | 51.8 | 59.6 |
| 10 | Zerodha Silver ETF FOF Direct Growth | 100 | 0.17 | 0 | 38.6 | – |
Read Also: Best Silver ETFs in India
Important Points to Consider before Investing
Before you decide to invest your money in silver mutual funds, you should quickly check these points mentioned below;
1. Prices Can Be Volatile
Silver prices move up and down quite a bit, they depend on global demand, industrial use, and even investor mood. There is no need to panic over short-term swings.
2. Returns Might Differ Slightly from Silver Prices
Since these funds invest in Silver ETFs, there can be a small difference between the actual price of silver and your fund’s return and this is called a tracking error.
3. Check the Expense Ratio
Every fund charges a small fee to manage your money. A lower expense ratio generally means more of your returns stay with you.
4. Think Long-Term
Silver is not about instant gains. Give your investment at least 3-5 years to even out the ups and downs.
5. Use It for Diversification
Silver works best as a small part of your portfolio, maybe 5 -10% to balance your exposure to equity and debt investments.
Read Also: How to Invest in Silver in India?
Conclusion
Silver mutual funds make it easy to add a bit of sparkle to your portfolio. As industries like electric vehicles, solar power, and electronics continue to grow, silver’s demand is only getting stronger day by day. However, silver prices can fluctuate depending on the global trends and supply. Think of it as a small but smart value addition. If you are looking for a simple, paperless way to benefit from silver’s long-term story, silver mutual funds are definitely worth a look in 2025.
Frequently Asked Questions (FAQs)
Are silver mutual funds safe to invest in?
They are safe, but remember silver prices can fluctuate. It is best to stay invested for a few years and manage those price swings.
What is better, a Silver ETF or a Silver Mutual Fund?
If you have a Demat account and are comfortable with trading, a Silver ETF is a good option. On the other hand if you prefer investing through regular mutual fund platforms, a Silver Mutual Fund is easier.
How much do I need to start investing?
Not much, You can start with as little as ₹500 through a SIP.
Can silver replace gold in my portfolio?
Both asset classes have different roles. It is better to own a bit of both for a balance.
How long should I stay invested?
Try for at least 3 to 5 years. Silver can be unpredictable in the short term, but over time, it generally gives better stability and growth.
