With silver prices surging due to macroeconomic and geopolitical factors, investors are increasingly looking at the metal as a strong investment opportunity. In response to this growing interest, Zerodha Fund House has announced the launch of the Zerodha Silver ETF, an open-ended exchange-traded fund designed to track domestic silver prices. The scheme opens for subscription on March 10, 2025, and will close on March 18, 2025.
Silver’s Strong Performance and Market Outlook
Silver has shown impressive gains, rising 15 percent in 2024 and adding another 11 percent in early 2025. Analysts attribute this uptrend to declining US interest rates, geopolitical uncertainties, and changing trade policies under the Trump administration. These factors are expected to keep silver well-supported in the medium to long term.
Zerodha’s Perspective on the Silver ETF Launch
Commenting on the launch, Vishal Jain, CEO of Zerodha Fund House, highlighted silver’s dual role as both an industrial and precious metal. He stated, “Silver has the potential to play a role in both investment portfolios and modern industries. Our Silver ETF provides investors with a valuable tool to diversify their portfolios and capitalize on the metal’s unique characteristics.”
Vaibhav Jalan, CBO of Zerodha Fund House, emphasized silver’s increasing demand in technology and clean energy, stating that the ETF offers investors an opportunity to participate in this evolving market.
Investment Objective and Structure
The Zerodha Silver ETF aims to generate returns aligned with the domestic prices of physical silver, subject to tracking errors. The fund will allocate:
- 5-100 percent in silver and silver-related instruments
- 0-5 percent in debt and money market instruments, cash, and cash equivalents
The minimum investment amount is ₹1,000, with additional investments in multiples of ₹1,000. The initial Net Asset Value (NAV) is set at ₹10 per unit or 1/10,000th of silver’s per kg price.
Risk and Suitability
While the ETF offers an opportunity to benefit from silver’s potential growth, it comes with very high risk, as indicated by both the Risk-o-meter of the Scheme and the Risk-o-meter of the Benchmark (domestic silver prices). Investors are advised to consult their financial advisers before investing.
With silver emerging as a promising asset amid global economic shifts, Zerodha Silver ETF provides an efficient way for investors to gain exposure to the metal. The NFO is available for application on Zerodha Coin and CAMS, and interested investors can find more details on Zerodha Fund House’s website.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before taking any investment decisions.