According to data from the Association of Mutual Funds in India (Amfi), the industry has seven silver ETFs-- Nippon India Silver ETF, ICICI Prudential Silver ETF, Aditya Birla Sun Life Silver ETF, HDFC Silver ETF, Axis Silver ETF, Kotak Silver ETF, and DSP Silver ETF-- with an asset under management of Rs 1,792 crore as of March 2023. All these funds were launched in 2022.
The reason silver is attractive and needs to be considered is that it has the best of both asset classes—gold as well as equities
Silver not only acts as a precious metal, but also has many industrial uses. Its demand spans industry, investment and jewellery.
In case of silver ETF, the regulator prescribe that the silver ETF should allocate at least have 95 percent of the assets to silver and silver related exchange traded commodity derivatives (ETCD).
Silver has been an integral part of investors’ commodity portfolio globally. As per etfdb.com, five silver ETFs account for assets worth USD 13.7 billion.
Silver always lags behind gold price performance. Historically, gold triggers the initial move in bullion complex and, eventually, silver gains traction.
As a safe haven investment option, silver-backed ETFs have become more attractive to investors