Best Silver ETF in India 2026 | Top 15 Funds Compared

The performance of silver and gold differs in ways that have always drawn my interest. People tend to overlook silver ETF India funds in India because they focus on gold investments, but this results in a major error.

Investors who want to build diverse portfolios should pay attention to silver price movements, which occur because silver functions as an industrial metal while gold does not. If you're also exploring precious metal investments, check out our complete guide on the best gold ETF in India for comparison.

The same confusion about investing in silver which beginners face, I experienced when I first wanted to invest in silver: silver mutual funds? Which option better suits my needs: The best silver ETF in India or the other available choices?

After conducting research for several months and gaining practical experience with the best silver ETF in India, I discovered that Silver ETFs provide investors an ideal combination of investment returns and operational simplicity.

Best 15 Silver ETFs in India 2026

Here's a comprehensive comparison of all available Silver ETFs in India with complete performance data:

Key Insights from the Data

• Largest Fund: Nippon Silver ETF leads with AUM of ₹31,496.87 Cr
• Highest Trading Volume: TATA Silver ETF with 43.52 Cr shares
• Best 1-Year Returns: Axis Silver ETF at 144.54%
• Best 5-Year Returns: Axis Silver ETF at 329.69%, followed by HDFC at 325.24%
• Most Affordable Options: TATA and Zerodha Silver ETFs at ~₹23 per unit

My Recommendation

The Nippon India Silver ETF provides beginners and most investors with their optimal investment solution because it delivers low costs and high liquidity together with dependable tracking performance. The HDFC and ICICI platforms provide efficient ETF solutions for users who already have these services.

What is a Silver ETF and How Does It Work?

Think of a silver ETF as owning silver without the hassle of physically storing it. It's that simple.

Definition of Silver ETF

A silver ETF fund is an Exchange Traded Fund that invests in physical silver. Each unit of the ETF represents a specific quantity of silver—typically 1 gram or a fraction thereof. The fund house buys actual silver bullion and stores it in secure vaults, while you get to own units of this silver through your Demat account.

Mechanism (Backed by Physical Silver)

The silver exchange-traded funds I love operate with actual physical silver as their fundamental asset. The fund actually purchases 99.9% pure silver bars and stores them in insured vaults. For every unit you buy, there's actual silver backing it up. The transparent system provides me with assurance about the safety of my investments.

Trading on Stock Exchanges

Silver ETF funds at stock exchanges NSE and BSE operate like common stocks yet require no physical silver dealer search for trading purposes.

• You can buy or sell during market hours (9:15 AM to 3:30 PM)
• Real-time pricing based on current silver rates
• Instant execution through your trading app
• No haggling or negotiation needed

I can literally sell my silver holdings in seconds if I need cash urgently. The process of selling physical silver bars requires more time than people need to sell silver.

Units and Pricing

The silver ETF price is directly linked to the market price of silver. The value of your ETF units will increase by approximately 5% when silver prices rise by 5% after deducting the minor expense ratio.

Most silver ETFs price their units based on 1 gram of silver. One ETF unit will have a price between ₹85 and ₹86 when silver trades at ₹85 per gram. The slight difference exists to show how the fund manages its expenses and tracks its performance.

Top 5 Best Silver ETFs in India

I have identified the top silver exchange-traded funds that investors should consider the best silver ETF to buy. I have conducted a detailed analysis of each option to assist you in making your decision.

Nippon India Silver ETF

This is my personal favorite and is often considered the best silver ETF in India. The Nippon India Silver ETF has been around long enough to establish a solid track record.

• Current NAV: Check the latest Nippon Silver ETF share price on NSE/BSE
• AUM: Significant size ensuring good liquidity
• Expense Ratio: Typically around 0.5-0.7% annually
• Tracking Error: Very low, closely follows silver prices
• Liquidity: Excellent daily trading volumes

What I particularly like about Nippon is its transparency. They regularly publish the exact quantity of silver held, and the tracking error is minimal. For beginners, this is probably the safest bet.

HDFC Silver ETF

This position is only verified because HDFC's reputation speaks volumes for itself in the mutual fund market, with its next likely leader in the silver ETF field.

• Current NAV: The HDFC Silver ETF share price is competitive
• AUM: Good fund size with growing investor interest
• Expense Ratio: Around 0.6-0.8% per year
• Tracking Error: Low, maintains good alignment with silver prices
• Liquidity: Decent trading volumes, easy to buy/sell

The ETF operates seamlessly with your current system, which includes your existing HDFC Bank accounts and your HDFC Securities trading activities. The customer service provides excellent support when you require help.

ICICI Prudential Silver ETF

ICICI Prudential's silver offering has shown consistent performance over time.

• AUM: Substantial assets under management
• Expense Ratio: Competitive, typically 0.55-0.75%
• Tracking Error: Minimal deviation from actual silver prices
• Liquidity: Good trading activity daily

My experience with ICICI shows that their fund management staff operates with complete professionalism. The ETF achieves precise silver price tracking while maintaining affordable operational expenses.

Axis Silver ETF

It is a new fund, but its popularity is growing steadily. The expense ratio is around 0.6%, which is affordable for investors.

• AUM: Moderate size but expanding
• Expense Ratio: Around 0.6%
• Tracking Error: Low
• Liquidity: Improving as more investors discover it

UTI Silver ETF

Since UTI is among the oldest fund houses in India, there is nearly half a century of experience to back up what it says.

• AUM: Decent fund size
• Expense Ratio: Competitive at 0.5-0.7%
• Tracking Error: Very tight tracking
• Liquidity: Adequate for most retail investors

Why Invest in Silver ETFs? Key Benefits

After investing in both physical silver and silver ETF funds, I can confidently say that ETFs win on almost every practical metric. Let me explain why.

Lower Investment Barrier vs Physical Silver

When I intended to purchase, actual silver dealers required me to buy at least 100 grams of silver. The required payment amount constitutes a large financial burden which needs complete payment before I can proceed with my purchase.

With silver ETFs, you can start investing by purchasing one unit, which contains approximately 1 gram of silver that has a value between ₹80 and ₹100. The solution enables students and young workers, and other people who wish to begin with small investments, to build their portfolios over time.

No Storage or Security Concerns

My personal experience taught me that physical silver storage creates significant difficulties. The storage solution requires either a bank locker, which costs between ₹3,000 and ₹5,000 annually, or a home safe, which introduces security risks.

The use of ETFs eliminates all storage requirements. Your silver sits safely in professional vaults, and you hold it digitally in your Demat account. No theft risk, no insurance premiums, no worries.

High Liquidity

To sell physical silver, you need to locate a buyer and then negotiate a price, which they will start at their lowest offer, and finally, you must deliver the silver. The process requires multiple days for completion.

The best silver ETF funds in India can be sold in seconds during market hours. You need to click on sell and then you will complete the transaction. The funds transfer to your account after two business days. Emergencies rely on this liquidity for their critical needs.

Transparency in Pricing

The value of physical silver remains unknown because different merchants establish different prices while applying their own substantial markup charges, which usually range between 10 and 15 percent.

The silver ETF share price exists as an open market value that gets updated each second throughout the trading period. The pricing system provides users with complete price information, which directly corresponds to current silver market costs.

Hedge Against Inflation

Silver maintains its value during inflation just like gold. Precious metals tend to increase in value when the rupee loses its purchasing power.

I have detected this pattern during times of economic instability because silver prices increase when people become more concerned about inflation.

Portfolio Diversification

Most people have stocks and maybe some gold in their portfolio. Silver ETF investments for long-term holdings create additional diversification benefits for your investment portfolio.

Silver prices move independently from both stock markets and gold markets, which protects against portfolio risk. Understanding equity vs commodity differences can help you build a truly diversified portfolio.

The Dhanarthi stock screener lets you test various asset distributions during your portfolio development process, which helps you assess multiple investment choices to reach your financial objectives.

Silver ETF vs Physical Silver vs Silver Mutual Funds

This is probably the most common question I get: Which one should I choose? I will explain the differences, which will help you choose the option that best matches your needs.

When to Choose Each Option

Choose Silver ETF if:

• You have a Demat account, and you know how to handle stock market transactions.
• You want to achieve maximum liquidity while conducting trades in real time.
• You choose to invest in options that provide affordable fees and complete cost information.
• You plan to invest your money for a duration between one and five years, and beyond that period.

Choose Physical Silver if:

• You require silver for your personal needs, which include jewelry and gift items.
• You choose to possess physical items that you are able to experience through sight and touch.
• You are conducting a single substantial acquisition which you intend to use for conventional purposes.
• You accept the duties associated with both storing and securing items.

Choose Silver Mutual Funds if:

• You do not have a Demat account and you choose to avoid creating one
• You choose to use SIP (Systematic Investment Plan) because it offers you better convenience
• You accept next-day liquidity as your preferred option instead of actual real-time access
• You prefer to invest in mutual funds through traditional methods because they offer you a better experience. Check out our guide on mutual funds vs index funds for a deeper comparison.

Cost Differences: A Real Example

If you plan to spend ₹50,000 to buy silver, here's what you'll need to pay:

Physical Silver:

• Base silver cost: ₹50,000
• Making charges (12%): ₹6,000
• GST (3% on silver + making): ₹1,680
• Total: ₹57,680

Silver ETF:

• Investment: ₹50,000
• Brokerage (0.05%): ₹25
• Annual expense ratio (0.6%): ₹300/year
• First year total: ₹50,325

The difference is massive! You lose 15% value because you own physical silver, which reduces your position to 85% before silver prices start to increase. The annual loss for ETFs amounts to only 0.6%.

How to Choose the Right Silver ETF

Picking the best silver ETF to buy isn't complicated, but you need to know what to look for. Here are the factors I always check before investing.

Expense Ratio Importance

This is your annual cost of holding the ETF. Lower is always better because it directly impacts your returns. Think about it: If silver prices increase by 8% and your ETF has a 0.5% expense ratio, your net return is 7.5%.

But if another ETF charges 1%, you only get 7%. Over 10 years, this small difference compounds significantly.

In my experience, any expense ratio below 0.7% is acceptable for silver ETF funds. Above 1% is too expensive.

Tracking Error Analysis

Tracking error measures how closely the ETF follows actual silver prices. A perfect ETF would move exactly with silver prices (minus the expense ratio).

Here's what I look for:

• Excellent: Tracking error under 0.3%
• Good: Tracking error between 0.3-0.6%
• Acceptable: Tracking error between 0.6-1%
• Poor: Tracking error above 1% (avoid these)

The best silver ETF funds in India typically maintain tracking errors well below 0.5%.

Liquidity (Trading Volume)

The average daily trading volume needs to be checked. Increased volume enables:

• The market allows traders to buy and sell securities without creating price changes.
• Better prices become available because traders need to pay less between bidding and asking prices.
• Traders gain greater security about their ability to leave positions whenever they want to do so.

I prefer ETFs with at least ₹50 lakh-₹1 crore daily trading volume. I become uncertain about investments that exceed ₹20 lakh.

Fund Size (AUM)

Larger funds are generally more stable. A fund with ₹500 crore+ AUM is unlikely to shut down or merge unexpectedly. Small funds that have total assets below ₹50 crore face difficulties in obtaining liquidity and must eventually cease operations, which will require you to sell your assets at an inconvenient time.

Historical Performance

The fund's historical performance provides evidence of its ability to track silver prices from the past to the present time.

I analyze return data for one-year, three-year, and five-year periods to assess actual silver price changes that occurred during those time frames. A good ETF should match silver's performance very closely (accounting for the expense ratio).

The Dhanarthi financial analysis tools provide investors with advanced analytical capabilities that enable them to evaluate multiple investment options through fundamental metric assessments while using stock analysis fundamentals to determine their ETF performance against other assets.

How to Invest in Silver ETFs in India

Let me walk you through the exact steps I followed when making my first silver ETF investment. It's simpler than you might think.

Step-by-Step Process

Step 1: Open a Demat and Trading Account

This requirement must be fulfilled. The purchase of ETFs requires a Demat account. I personally use Zerodha, but popular share brokers in India include:

• Zerodha (my choice—low fees, great app)
• Upstox
• Angel One
• ICICI Direct
• HDFC Securities
• Groww

The entire account opening process now operates through online platforms. You need to have your PAN card, Aadhaar card, and bank information available. The entire procedure requires a time span of 15 to 30 minutes.

Step 2: Complete Your KYC

All brokers are required to verify your identity. You will send the paperwork online and perform a video call to get verified. Sounds easy.

Step 3: Fund Your Trading Account

You can transfer funds from your bank account to your trading account through three payment methods, which are IMPS, NEFT, and UPI. The majority of brokers now provide their customers with the ability to transfer funds instantly.

Step 4: Search for the Silver ETF

Open your trading app and search for this particular ETF. If you wanted Nippon India Silver ETF, you would have to find its ticker symbol on either the NSE or BSE.

Step 5: Place Your Buy Order

The purchasing process for silver ETFs functions like stock purchases.

• Market Order: Buys at the current silver ETF price immediately
• Limit Order: Buys only if the price reaches your specified level

The number of units you want to purchase should be entered by you, and you need to confirm the purchase.

Step 6: Monitor Your Investment

Your ETF units will appear in your Demat account within T+2 days (2 working days after purchase). You can track the silver ETF share price through your broker's app on a daily basis.

Minimum Investment

Most silver ETF India options allow you to buy a single unit. The current prices show that each unit costs between ₹80 and ₹100 because it contains approximately 1 gram of silver.

The minimum investment requirement should start from ₹5,000 to ₹10,000 because this amount will create a meaningful investment after you consider brokerage fees.

Brokerage Platforms

Discount brokers (Zerodha, Upstox, Angel One) charge around ₹20 per trade or 0.03% of transaction value, whichever is lower. Full-service brokers (ICICI, HDFC) charge higher but offer advisory services.

I choose discount brokers for my ETF investments because their fees are low, and ETF investments require no advice since you only need to follow silver price movements.

Tax Implications of Silver ETF Investment

Understanding taxes is crucial because it affects your actual returns. Let me break down the tax treatment of silver ETF funds in simple terms.

Short-Term Capital Gains (STCG)

The tax treatment of your silver ETF profits applies short-term capital gains rules for any sale made within three years after you bought the units.

Your profits will be added to your total income, which will determine your tax rate based on your income tax bracket.

Your total tax obligation will amount to ₹15,000 for selling within three years while you maintain a 30% tax bracket and make a profit of ₹50,000.

Long-Term Capital Gains (LTCG)

If you hold your silver ETF for a long term, more than 3 years, and then sell, you get better tax treatment.

• Tax Rate: 20% with indexation benefit.

Indexation provides excellent benefits because it permits you to decrease your taxable income through inflation-based adjustments of your purchase price. Your taxes will decrease by a substantial amount through this tax-saving method. To understand more about how capital gains tax works on different instruments, our complete guide breaks it down simply.

Example without indexation:

• Purchase price: ₹1,00,000 (Year 1)
• Sale price: ₹1,50,000 (Year 5)
• Profit: ₹50,000
• Tax at 20%: ₹10,000

Example with indexation:

• Purchase price: ₹1,00,000 (Year 1)
• Indexed purchase price: ₹1,20,000 (adjusted for inflation)
• Sale price: ₹1,50,000 (Year 5)
• Indexed profit: ₹30,000
• Tax at 20%: ₹6,000

See the difference? Indexation saved you ₹4,000 in taxes!

Holding Period

The 3-year threshold is critical. If you sell your assets one day before you complete three years of ownership, you will pay short-term tax rates. If you are near the three-year mark, it is better to wait for three years to pass.

Tax Treatment vs Physical Silver

The situation becomes more fascinating at this point. Physical silver and silver ETFs face the same tax treatment, yet silver ETFs provide a significant benefit through their ability to maintain documentation.

Physical silver ownership requires complex methods to establish both the date of acquisition and the actual purchase price. The digital documentation system of ETFs allows brokers to deliver complete statements which show all details about your purchases, including their dates, their costs, and their quantities.

The tax filing process becomes simpler because of this feature. I enjoy this feature because I can download my broker's capital gains report during tax season and give it to my CA for completion.

Who Should Invest in Silver ETFs?

Investors need to select specific investments that match their individual requirements. I will assist you in determining whether silver exchange-traded funds in India suit your investment needs.

Investor Profiles That Benefit Most

The investment for customers who need stock alternatives should choose 5 to 10 percent silver, which protects their existing stock and equity mutual fund holdings.

The low minimum investment requirement of one unit, which costs around ₹80-100, gives beginners an ideal opportunity to develop their wealth. You can start with a small amount of money and then increase your investments as your earnings rise. Understanding the difference between large cap vs mid cap vs small cap stocks helps you build a more balanced portfolio alongside silver ETFs.

Silver serves as an inflation-protective asset that attracts investors who worry about their money losing purchasing power. Tech-savvy investors who use trading apps and Demat accounts will find that ETFs fit naturally into their investment process.

Investment Horizon

Medium to Long-Term (3-10 years):

The investment period serves as the perfect time frame for investors who wish to invest in silver exchange-traded funds. The investor receives tax benefits through long-term capital gains, which include indexation, while silver has shown consistent strong performance throughout its entire trading history.

Short-Term (Under 1 year):

The situation allows for execution but requires you to accept unpredictable market conditions. Silver prices can swing wildly in the short term. Investors face increased tax liabilities when they realize profits from assets they held for under one year.

Very Long-Term (10+ years):

When people accept money, they are conscious of utilizing it to earn an expected return in some macroeconomic context.

Risk Appetite

The investment medium of silver exists between two extremes of financial risk with stocks representing the highest risk and fixed deposits representing the lowest risk.

Moderate Risk Tolerance: Prices show some variation, but markets display less unpredictable behavior than individual stocks. People who can tolerate annual price fluctuations between 15% and 25% will experience successful results.

Low Risk Tolerance: People who experience market correction panic attacks should avoid investing in silver ETFs because these products will create anxiety for them. The silver ETF price will definitely fluctuate, and you need to be okay with that.

High Risk Tolerance: You might find silver too tame! Silver functions as both a protective asset and a portfolio diversification tool, but it does not provide any growth potential. Investors who seek high investment returns should consider stocks and sectoral equity funds as their better choice.

The Dhanarthi platform provides financial statement analysis tools that enable you to assess how various asset classes work together to support your goal of creating a diversified investment portfolio.

Risks and Challenges of Silver ETF Investment

Let's discuss the negative aspects of the situation. I will present all the risks associated with the investment because I want you to make informed choices about your investments.

Price Volatility

Silver exhibits greater price fluctuations than gold. The silver exchange-traded fund experienced a share price decline of 15 to 20 percent during certain months without any significant announcements. The stock price then experienced a 25 percent increase throughout the upcoming three-month period.

People find this unpredictable situation to be highly stressful. People who daily monitor prices while worrying about every 2 percent price change should not invest in silver. You need to zoom out and focus on the long-term trend.

Market Risk

Silver prices depend on global factors completely outside your control:

• Industrial demand refers to the requirements of electronics, solar panels, and the medical equipment industries.
• Investment demand measures the total worldwide interest that investors show in silver.
• Currency fluctuations occur because the strength of the dollar directly impacts silver market prices.
• Economic growth leads to increased industrial demand, while recessions create a decrease in industrial requirements.

You can't predict or control any of these. Accept that silver prices will do what they do, regardless of your hopes.

Tracking Error

The top silver ETF available in India fails to match silver price movements because of existing tracking errors. The fund incurs trackable expenses through its operational costs and trading spreads, and its fund management capabilities.

Good ETFs maintain this tracking error below 0.5% every year, but you will not receive complete access to silver price movements. The silver price increase of 10% will result in a 9.4-9.6% return for you after deducting expenses.

Liquidity Risk in Small ETFs

Some smaller silver ETFs maintain extremely low trading activity during their operational hours. If you own a large position and need to sell your shares immediately, you will find it hard to locate buyers who offer you reasonable prices.

I follow this rule because I prefer to invest in ETFs that maintain daily trading volumes that exceed ₹50 lakh. The top few ETFs (Nippon, HDFC, ICICI) don't have this issue, but niche or newer ETFs might.

No Dividend Income

Silver mutual funds and ETFs do not produce any income because they function differently from dividend-paying stocks and interest-paying bonds. Your only return comes from price appreciation when you sell.

Silver ETFs do not provide the income that you need to receive from your investments. Consider dividend-paying stocks or best mutual funds SIP plans instead.

Currency Risk

Silver is priced globally in US dollars. So rupee-dollar exchange rates affect your returns.

Here's what happens:

• The value of your ETF increases when the Indian Rupee decreases in value because silver prices rise in Indian Rupees.
• The value of your ETF decreases when the Indian Rupee increases in value because silver prices drop in Indian Rupees.

During 2024-25, the rupee weakened from ₹82 to ₹84-85 per dollar, which actually boosted silver ETF returns for Indian investors. But this can work against you too if the rupee strengthens.

No Physical Possession

Some people love holding physical gold or silver—the emotional satisfaction of owning something tangible. With ETFs, you own units in a Demat account. The entire system presents itself as digital data, which exists solely in virtual form.

ETFs fail to provide physical ownership, which you value as essential. I find digital ownership more practical, so I prefer it to physical ownership.

Conclusion

To select the best silver ETF in India, you must first determine your requirements and then conduct necessary research. From my experience, the Nippon India Silver ETF, HDFC Silver ETF, and ICICI Prudential Silver ETF provide strong investment results while maintaining affordable fees and sufficient market access for most investors.

The main benefits of silver ETF funds as an investment option include a low initial investment requirement, the absence of storage issues and ability to sell assets at any time, and tax benefits that apply to assets held for extended periods.

Just remember that silver can be volatile, so invest only what you're comfortable holding for at least 3-5 years.

If you want to start learning about commodity investing, begin with small investments. Maybe allocate 5-10% of your portfolio to silver and see how you feel about the price movements. You can also use the Dhanarthi stock screener to track and compare your silver ETF holdings with other assets in your portfolio.

Disclaimer: This article is for educational purposes only and should not be considered as financial or tax advice. Tax laws are subject to change, and individual circumstances vary. Please consult with a qualified chartered accountant or tax advisor for personalized guidance based on your specific situation.

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