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Investing in silver doesn’t have to mean buying coins or bars. Silver ETFs let you gain exposure to silver easily, securely, and with full liquidity, without worrying about storage, purity, or insurance. This article explains what Silver ETFs are, how they work, their benefits, and how you can start investing in them in India.
A Silver ETF is a financial instrument that invests in physical silver or silver-related assets. This ETF allows investors ownership in silver commodities without needing to hold or store the assets. The Silver ETF share price is directly linked to the market price of silver. Investors can trade this ETF through the stock exchange just like trading stocks.
A Silver ETF uses pooled investor funds to buy physical silver. The commodity is stored in insured vaults. Fund managers ensure transparency and maintain purity.
Investors can buy and sell ETF units through their demat accounts on the stock exchange, and the NAV moves in line with Silver’s market price.
The trade and redemption process is handled by authorised participants that keeps the ETF’s market price with its NAV and ensures liquidity.
ETFs on Silver are designed to invest in securities in conformity with standards laid out by SEBI. These standards apply in the way the funds track prices and provide liquidity to investors.
Silver ETFs offer a practical, affordable, and secure alternative to physical silver investment while offering the benefits of easy trading and diversification. Some of the advantages of Silver ETFs are:
Also Read: Best Investment Plans for Long Term in India
You can invest in Silver ETF by following these simple steps:
Silver ETFs have continued to attract strong inflows in 2025, with several funds delivering high year-to-date and one-year returns. The table below highlights the best Silver ETF in India based on AUM and recent performance trends.
Silver ETF
AUM (INR crore)
YTD Return (%)
1-Year Return (%)
3-Year Return (%)
5-Year Return (%)
Nippon India Silver ETF
10,851.84
83.80
55.89
34.43
16.69
ICICI Prudential Silver ETF
7,256.74
84.34
56.37
34.79
16.86
Kotak Silver ETF
1,664.17
84.07
56.18
–
16.81
HDFC Silver ETF
1,369.22
84.01
56.09
34.62
16.95
SBI Silver ETF
1,301.57
83.84
56.03
16.89
Aditya Birla SL Silver ETF
1,085.39
56.39
34.72
16.79
When investing in Silver ETF in India it is also important to be aware of the tax implications. As per the taxation rule for ETF introduced in Union Budget 2024, the taxation on Silver ETFs is applied as follows:
Type of Taxation
Taxation Rate
Note
Short-Term Capital Gains (STCG) - When holding period is less than 12 months
As per Income Tax Slab Rate
Gains from redemption are added to your total taxable income and taxed accordingly,
Long – Term Capital Gains (LTCG) - When holding period is 12 months or more.
12.5% plus any applicable surcharge and 4% cess
There is no indexation benefit for LTCG on Silver ETFs.
Also Read: Tax on Equity Mutual Funds
Silver ETFs in India would be a convenient option if you want exposure to silver without dealing with physical storage or purity related issues.
Since we have covered in the earlier sections on the meaning how to invest in Silver ETF, you by now know that the funds are one of the simplest and most transparent methods of adding a precious metal to your portfolio. Silver ETFs can support diversification and act as a hedge in times of market volatility.
They work well for investors seeking liquidity, low transaction costs, and an easy way to take advantage of the movements in the prices of Silver. You may also consider a DBS Treasures wealth account if you prefer a more guided way of managing your portfolio with expert support.
Silver ETFs make investing in precious metals accessible, convenient, and transparent. They suit investors seeking liquidity, portfolio diversification, and a hedge against market fluctuations. By understanding how to buy Silver ETF and their features, you can make informed decisions aligned with your financial goals.
For those managing multiple investments or seeking seamless fund management, a DBS Treasures premium savings account can help you stay on top of your portfolio, offering easy access to funds and personalised banking support.
Disclaimer: The information provided in this article is for general informational purposes only. For specific guidance or details, please consult with your Relationship Manager or a relevant expert.
