Zerodha Silver ETF
A simple ETF to take silver exposure in your portfolio
Allotment
Mar 20
Listing
Mar 26
Risk
Very High
Min. Investment
₹1,000
Ideal for
Diversification
Commodity Exposure
DIY Investors
About the fund
The Zerodha Silver ETF is an exchange-traded fund that aims to track the performance of silver. While Gold is often recognized for its role in a well-diversified portfolio, Silver also presents a distinct investment opportunity with its own set of advantages.
The Zerodha Silver ETF is an exchange-traded fund that aims to track the performance of silver.
While Gold is often recognized for its role in a well-diversified portfolio, Silver also presents a distinct investment opportunity with its own set of advantages.
Beyond its intrinsic value and cultural significance, silver is widely used across various industries, including automotive, technology, pharmaceuticals, and renewable energy. According to the estimates by ‘The Silver Institute’, industrial demand for silver has surged by more than 1.5 times over the past 9 years.
Backed by physical silver bars of 99.9% purity, this ETF makes investing in silver easy without worrying about physical storage or security. It also offers easier liquidity, and cost efficiency than physical Silver in a regulated structure, making it easy to manage. This silver ETF may be suitable for someone who wants to diversify their portfolio into commodities, or benefit from silver’s demand.
Past Performance
Tax Implication
Investment period <= 1 year
Gains/profits are treated as short-term capital gains & taxed as per your tax slab (plus 4% cess and surcharge, if any).
Investment period > 1 year
Before 1st April 2025, Gains/profits will be taxed as per your tax slab (plus 4% cess and surcharge, if any). Starting 1st April 2025, Gains/profits will be taxed at 12.5% (plus applicable surcharge and 4% cess).
Fund Managers
Kedar has an experience of 17 years in financial markets, across multiple roles at Aditya Birla Sunlife AMC Ltd (ABSLAMC), including fund management for passive products, where he managed 13 ETFs and Index Funds in equity & commodity. Kedar's belief in his own words is - "Passive investing uses the collective intelligence of the market instead of manually picking stocks and works for most investors."
Shyam has previously worked across different investment management roles at smallcase & True Beacon. Shyam is of the opinion that, "Passive investing enables a hands-off approach for investors to build for the long term. Afterall, simplicity is a sign of clarity."
Downloads
Riskometer
Riskometer of the scheme
Riskometer of the scheme
Riskometer of the benchmark - Domestic Price of Physical Silver
This product is suitable for investors who are seeking*:
- To generate capital appreciation over long term.
- Returns that are in line with the performance of Silver over the long term, subject to tracking errors.
Investors should understand that their principal will be at Very High Risk
Note - The product labelling assigned during the New Fund Offer (NFO) is based on internal assessment of the scheme characteristics or model portfolio and the same may vary post NFO when actual investments are made.
*Investors should consult their financial advisers if in doubt about whether the product is suitable for them.
Other Funds
Zerodha Gold ETF
Zerodha Gold ETF FoF
Zerodha Nifty 1D Rate Liquid ETF
Frequently Asked Questions
Fund Overview
Zerodha Silver ETF trades on stock exchanges like regular stocks. Investors buy and sell shares of the ETF, which represents a fractional ownership of silver holdings or contracts. One of the factors that affect the ETF's value is silver prices in the global market.
Silver's industrial demand in various industries such as automotive, renewable energy supports its long-term growth potential. It also enhances portfolio diversification since historically silver has had a low correlation to equities.
The Zerodha Silver ETF offers a efficient way to invest in silver without storage hassles. Backed by 99.9% pure silver in secured vaults, it ensures transparency, security, and liquidity than physical silver.
During the New Fund Offer (NFO), the min investment amount is ₹ 1000 and in multiples of ₹ 1000 thereafter. After the NFO, Zerodha Silver ETF will trade on the stock exchange(s) and the minimum investment amount would be the unit price of the ETF on the stock exchange(s).
Investment Philosophy
The ideal holding period depends on your investment goals. If you're looking to diversify your portfolio with commodities, silver can be a long-term strategic asset, similar to gold. Its industrial demand and potential price appreciation might make it a valuable portfolio diversifier.
The Zerodha Silver ETF is a very high risk scheme. Hence, investors should consult their financial advisers if in doubt about whether the product is suitable for them.
Mode of Investing
Investors can invest in Zerodha Silver ETF during the NFO using applications such as Coin by Zerodha and MyCAMS. Once listed on the stock exchanges, Zerodha Silver ETF will be available on all major stock broking platforms.
Cost and Tax Implications
There is no Exit Load applicable on Zerodha Silver ETF.
Taxation will only be applicable on the gains from the units of the Zerodha Silver ETF
- For investment period <= 1 year
- For Investment period > 1 year (Before 1st April 2025)
- For Investment period > 1 year (Starting from 1st April 2025)
Gains/profits are treated as short-term capital gains & taxed as per your tax slab (plus 4% cess and surcharge, if any)
Gains/profits are treated as long-term capital gains and taxed as per your tax slab (plus 4% cess and surcharge, if any)
Gains/profits are treated as long-term capital gains and taxed at 12.5% (plus applicable surcharge and 4% cess)