Silver ETFs Shine: Top 10 Funds Deliver Over 270% Returns in 1 Year

Silver has emerged as one of the best-performing commodities, supported by strong industrial demand, global uncertainty and a sharp rise in prices. Like gold, silver is now seen as both a hedge against inflation and a key asset for portfolio diversification.

This strong rally has led to exceptional gains in Indian silver exchange-traded funds (ETFs).

Silver ETFs Post Massive Returns

Data from Ace MF shows that most Indian silver ETFs delivered 1-year returns of over 270%, while 3-year returns are close to 70%. This highlights the powerful uptrend in silver prices over the past year.

Top 10 Silver ETFs by AUM and Returns

Some of the best-performing silver ETFs include:

• Nippon India Silver ETF: ₹28,944 crore AUM, 272% one-year return
• ICICI Prudential Silver ETF: ₹14,828 crore AUM, 274% one-year return
• HDFC Silver ETF: ₹6,074 crore AUM, 269% one-year return
• SBI Silver ETF: ₹4,747 crore AUM, 272% one-year return
• Kotak Silver ETF: ₹3,379 crore AUM, 273% one-year return

Tata Silver ETF stood out with the highest year-to-date performance, reflecting strong momentum in silver prices. Smaller ETFs from DSP, Axis and UTI also posted similar gains, showing that the rally lifted the entire category.

Why Investors Are Choosing Silver ETFs

Silver ETFs offer a simple and regulated way to invest in silver without dealing with storage, purity or security issues linked to physical metal. They can be bought and sold easily through demat accounts, just like shares.

Strong demand from sectors such as solar energy, electronics and technology, along with safe-haven buying, has further boosted silver prices. This has pushed combined assets in gold and silver ETFs beyond ₹1 lakh crore, making them mainstream investment options.

Read More: Top 3 Geopolitical Developments Across Regions and Their Role in Supporting Gold and Silver Prices.

Tax Rules for Silver ETFs

Silver ETFs are treated as listed securities in India:

• If held for more than 12 months, gains are taxed at 12.5% as long-term capital gains, without indexation
• If sold within 12 months, gains are taxed as per the investor’s income tax slab

This tax structure is simpler compared to physical silver, which usually requires a longer holding period for lower tax rates.

Conclusion

Silver ETFs have delivered outstanding returns, reflecting the strong rise in silver prices and growing investor interest. They provide a liquid, cost-effective way to gain exposure to silver without physical hassles. However, silver prices can be volatile, so these ETFs are best used as part of a diversified portfolio aligned with your risk appetite and long-term goals.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a private recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.