Silver ETF

What are Silver ETFs?

Silver ETFs (Exchange Traded Funds) are a category of funds that track the price of silver by investing in physical silver (30 kg bars with 99.99% purity). Hence, investors can trade (in silver) without having the need to purchase and store the metal physically. Along with gold, silver is considered a highly valuable and safe investment alternative.

Silver ETFs in India are quite popular and have consistently given high ROIs. These are traded on the stock exchanges, so buying and selling is simple and convenient. They are an effective hedge against inflation and are also used for portfolio diversification.

You can simply search for the Silver ETF share price for your chosen fund, and the prices are available on a real-time basis.

Who Should Invest in Silver ETFs?

Here is a list of investors who must invest in Silver ETFs:

1. Investors Looking for Portfolio Diversification: Adding Silver ETFs to your portfolio gives it a diversification boost, which can help reduce losses.
2. Investors with a Long-Term Focus: Silver ETFs help improve portfolio performance and are critical for investors looking to create wealth for life goals such as building a pension fund.
3. Investors Looking for Cost-Effective Options: Silver ETFs have low entry and exit costs and minimum brokerage fees, making them an excellent choice for cost-conscious investors.
4. Investors Looking for Risk Management: Silver ETFs are considered moderate to high risk investments, hence they work well for investors looking to manage overall portfolio risk.
5. Investors Seeking Convenience: Investors who do not want the hassle of buying and storing physical silver can easily trade on exchanges.

Benefits of Investing in Silver ETFs

Here are the most critical benefits of investing in Silver ETFs:

1. Flexibility of Investment: Unlike physical silver investments, where you cannot break up your investment systematically, in this case, it is possible to start the investment as low as ₹100 (even lower, as offered by a few funds). Such investment flexibility is not available in the case of physical silver.
2. Secure and Assured Purity: Buying physical silver is risky because metal impurities can easily dupe you, considerably reducing the value. On the other hand, ETFs hold 99.9% pure bullion in audited, SEBI-regulated vaults, removing any doubt about metal quality.
3. Ease of Trade: You can trade anytime, as per the exchange regulations, from the convenience of your smartphone. Silver ETF price changes just like shares, and hence, even intraday trade is quite straightforward.
4. Portfolio Diversification and Hedging Alternative: Silver, as a safe and valuable metal, works pretty well for portfolio diversification and hedging.
5. Transparency: ETFs are passively managed funds with low expense ratios and no making charges (like in physical silver), and they have clear NAVs in line with real-time silver pricing.

How to Invest in Silver ETFs?

Investing in Silver ETFs is easy. Here are the steps you need to take:

1. Login (or Register): If you have an Upstox account, simply log in or register for a free account.
2. Look for Silver ETFs: Look for the Silver ETF list on the platform, each with performance data, AUM, and other details (of each fund) you need to make a selection.
3. Select Your Silver ETF: Select from the list of Silver ETF Funds the one that suits your investment goals.
4. Investment Type: You can go for a lumpsum investment or SIP, as per your budget and financial planning.
5. Make the Payment: Buy in real time on the exchange using a market or limit order, or via SIP/lump-sum options.
6. Monitor and Manage: Keep track of the Silver ETF’s growth against the prescribed benchmark.