Silver ETFs Are Here! Should You Invest In Them?

The only commodity that has so far been a part of the mutual fund ecosystem is gold but now investors can also invest in silver.

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AMCs such as ICICI Prudential, Aditya Birla, and Nippon have rolled out their silver ETFs and fund of funds (FoFs) variants to cater to investors both with and without a Demat account. Some fund houses like DSP, HDFC, and Mirae Asset have filed their offer documents for silver ETFs with SEBI.

SEBI laid out the operating procedures for silver ETFs in November 2021. These schemes have to invest at least 95 per cent of their net assets in physical silver and silver related instruments (including derivatives subject to a maximum of 10 per cent). Before the advent of silver ETFs, one could only buy silver in the physical form or trade-in its futures on the commodity exchanges.