Silver has always lived in gold’s shadow. Yet when markets turn moody, silver quietly steps up like the reliable friend who doesn’t talk much but always delivers. In recent years, Indian investors have started treating silver as more than jewellery metal. They now see it as a serious investment asset, especially through Silver Exchange Traded Funds (ETFs).
This guide explains the best Silver ETFs in India, how they work, which ones suit long-term investors, and how to choose the right option without getting lost in numbers.
Let’s keep it simple, factual, and useful.
What Is a Silver ETF?
A Silver ETF is a mutual fund scheme that tracks the domestic price of physical silver. The fund house buys high-purity silver and stores it securely. Each ETF unit represents a specific quantity of silver.
You invest through your Demat account, just like buying shares. No locker. No making charges. No tension about purity.
In short:
You own silver without touching silver.
Why Investors Prefer Silver ETFs Over Physical Silver
Physical silver looks shiny but comes with practical issues. Silver ETFs solve most of them.
Key Benefits
- No storage or theft risk
- Transparent pricing based on market rates
- Easy buying and selling on stock exchanges
- Lower cost compared to coins or bars
- Ideal for SIP and long-term allocation
Silver ETFs also fit well into a diversified portfolio, especially when equity markets behave like roller coasters.
How Silver ETFs Are Regulated in India
Silver ETFs in India operate under SEBI regulations. Fund houses must maintain strict standards for purity, storage, and disclosure.
Most funds hold 99.9% pure silver, stored with approved custodians. Daily Net Asset Value (NAV) updates ensure transparency.
No guesswork. No creative accounting.
Best Silver ETFs in India (Updated List)
Below are some of the most trusted and actively traded Silver ETFs in India. This list focuses on track record, liquidity, expense ratio, and fund management quality.
Nippon India Silver ETF
Nippon India Mutual Fund launched India’s first Silver ETF, making it a category pioneer.
Why investors like it:
- First-mover advantage
- Strong liquidity
- Consistent tracking of silver prices
It suits both SIP investors and long-term holders who want stability over hype.
ICICI Prudential Silver ETF
ICICI Prudential Mutual Fund offers a well-managed Silver ETF backed by a large AMC.
Key highlights:
- Reasonable expense ratio
- Strong operational transparency
- Good trading volumes
This ETF works well for conservative investors who prefer established brands.
HDFC Silver ETF
HDFC Mutual Fund entered the silver ETF space with disciplined fund management.
What stands out:
- Reliable fund processes
- Competitive cost structure
- Suitable for long-term allocation
This fund appeals to investors who value consistency over aggressive positioning.
Kotak Silver ETF
Kotak Mahindra Mutual Fund offers a clean and transparent silver ETF product.
Why consider it:
- Focus on precise tracking
- Suitable for SIP-based investing
- Backed by a strong financial institution
It works best for investors building gradual exposure.
Best Silver ETF in India With Lowest Expense Ratio
Expense ratio matters. It quietly eats returns over time.
While expense ratios change periodically, Nippon India Silver ETF and ICICI Prudential Silver ETF usually stay among the lower-cost options in this category.
Always check the latest expense ratio on the fund house website or AMFI portal before investing. Numbers change, and accuracy builds trust.
Best Silver ETFs in India for SIP Investors
Silver ETFs support SIP through stock exchanges or mutual fund platforms.
Good SIP-friendly options include:
- Nippon India Silver ETF
- HDFC Silver ETF
- Kotak Silver ETF
SIP helps average costs and reduces timing risk. Silver prices can swing sharply, so discipline matters more than prediction.
Best Silver ETFs in India for Long-Term Investment
Silver works best as a portfolio hedge, not a get-rich-quick plan.
For long-term investors (5+ years), focus on:
- Low tracking error
- Strong AMC credibility
- Consistent volume
Nippon India Silver ETF often fits this profile due to liquidity and market maturity.
Silver ETF vs Gold ETF: Logical Comparison
Gold feels safe. Silver feels useful.
Silver has industrial demand from electronics, solar panels, and EV components. This gives silver a dual nature: precious and practical.
Gold shines during fear.
Silver shines during growth.
Many investors combine both ETFs to balance stability and opportunity.
Risks You Should Know (No Drama, Just Facts)
Silver ETFs are not risk-free.
Key risks include:
- Price volatility
- Currency fluctuation impact
- Market liquidity during extreme events
Silver prices react faster than gold. That’s good on the way up and uncomfortable on the way down. Awareness beats regret.
How to Choose the Best Silver ETF in India
Before investing, check these five points:
- Expense ratio
- Tracking accuracy
- Fund house reputation
- Daily trading volume
- Transparency in disclosures
Ignore marketing noise. Data speaks louder.
Taxation of Silver ETFs in India
Silver ETFs fall under non-equity mutual funds.
- Short-term gains (held < 3 years): taxed as per income slab
- Long-term gains (held ≥ 3 years): taxed at 20% with indexation
Tax rules can change, so confirm from official sources or consult a tax advisor.
Are Silver ETFs Good in 2026 and Beyond?
Silver demand continues to grow due to renewable energy and technology sectors. While prices fluctuate, silver’s relevance remains strong.
Silver ETFs make participation simple, regulated, and transparent. That combination matters in the long run.
No crystal ball needed—just patience and discipline.
Final Verdict: Best Silver ETF in India
There is no single “perfect” Silver ETF for everyone.
However, for most investors:
- Nippon India Silver ETF suits liquidity seekers
- ICICI Prudential Silver ETF fits conservative investors
- HDFC and Kotak Silver ETFs work well for SIP strategies
Choose based on your goal, not trends.
Silver rewards logic more than luck.
Trusted Sources Used
- SEBI Mutual Fund Regulations
- AMFI (Association of Mutual Funds in India)
- Official fund house disclosures and scheme documents
All information follows publicly available, verified data.
