Best Silver Mutual Fund In India

Summary
Silver mutual funds offer investors exposure to silver prices without the requirement of physically owning or storing silver.

Several factors, including AUM, expense ratio, exit load, tracking error, and performance, need to be considered before investing in silver mutual funds.

Best 10 Silver Mutual Funds: Quick Comparison

The best silver mutual funds in India as of 29 July 2026 are listed below.

Name	Plan	AUM (In Crores)	NAV	1 Year Returns	Expense Ratio	Exit Load
ICICI Pru Silver ETF FoF	Growth	6,066.63	33.03	87.20	0.20	1.00
HDFC Silver ETF FoF	Growth	4,893.86	35.59	87.23	0.22	1.00
Nippon India Silver ETF FoF	Growth	4,230.17	32.86	87.09	0.22	1.00
SBI Silver ETF FoF	Growth	3,678.70	23.03	89.87	0.33	1.00
Aditya Birla SL Silver ETF FoF	Growth	1,201.64	33.54	87.14	0.32	0.50
Axis Silver FoF	Growth	1,148.03	37.06	87.68	0.09	0.25
TATA Silver ETF FoF	Growth	1,022.96	28.29	83.84	0.21	0.50
Kotak Silver ETF FoF	Growth	922.93	28.84	88.88	0.28	0.50
DSP Silver ETF FoF	Growth	788.86	22.48	88.01	0.59	_
UTI Silver ETF FoF	Growth	588.40	27.58	87.65	0.12	1.00

Top 10 Silver Mutual Funds

1. ICICI Pru Silver ETF FoF 

This primarily invests in the ICICI Prudential Silver ETF, providing indirect exposure to the physical silver market, with AUM of ₹6,066.63 crore. Investors who seek to gain benefits from silver price movements without having physical access to the metal. It has an expense ratio of 0.20% and carries an exit load of 1%.

2. HDFC Silver ETF FoF

This fund follows domestic silver prices and manages assets worth ₹4,893.86 crore. It displays an annual return of 87.23%. The fund follows a growth plan and carries a 1% exit load and a 0.22% expense ratio.

3. Nippon India Silver ETF FoF

This fund has an AUM of ₹4,230.17 crore and recorded an annual return of 87.09%. It is designed for investors seeking to participate in price movements through mutual funds. It includes an expense ratio of 0.22% and an exit load of 1%.

4. SBI Silver ETF FoF

This fund invests in in-house silver mutual funds with an AUM of ₹3,678.70 crore, with an expense ratio of 0.33%. These funds also invest indirectly in physical silver. It displayed the highest annual return of 89.87%. 

5. Aditya Birla SL Silver ETF FoF 

The fund displays assets of ₹1,201.64 crore and delivered an annual return of 87.14%. They charge an expense ratio of 0.32% and have a comparatively lower exit load of 0.50%. They also provide a convenient way to gain exposure to silver without holding the physical asset. 

6. Axis Silver FoF 

The fund has enabled investors to purchase silver without physically accessing the asset, with total assets of ₹1,148.03 crore. It shows an annual return of 87.14%. It charges the lowest expense ratio at 0.09% and a comparatively lower exit load of 0.25%.

7. TATA Silver ETF FoF 

The fund holds assets worth ₹1,022.96 crore and delivered an annual return of 83.84%. It includes an expense ratio of 0.21% and an exit load of 0.5%. Although the assets held and returns earned are relatively lower, it is still an option for investors.

8. Kotak Silver ETF FoF

The fund involves a total asset value of ₹922.93 and displayed an annual return of 88.88%. It has an expense ratio of 0.28% and an exit load of 0.50%. Investors must evaluate the performance and charges involved before investing.

9. DSP Silver ETF FoF

The fund manages an AUM of ₹788.86 crore and recorded an annual return of 88.01%. It includes an expense ratio of 0.59%. However, it does not include any exit load. Therefore, this may also be a good investment option.

10. UTI Silver ETF FoF

The fund has assets worth ₹588.40 crore and delivers an annual return of 87.65%. It includes a comparatively low expense ratio of 0.12% and an exit load of 1%. This makes the fund one of the most affordable investment options.

How We Selected These Silver Funds?

The funds were selected based on qualitative and quantitative factors suitable for a wide range of investors.

1. Asset Under Management (AUM): This indicates the volume of investor participation in the fund. It indicates the number of investors actively investing in the funds.

2. Expense Ratio: Expense ratio is the fee charged by the fund for maintaining the investors’ fund. It impacts the total returns earned by them. A high expense ratio can lower the total returns earned and reduce the efficiency of the investment.

3. Exit Load: This represents the penalty or fee charged when investors exit their investment before a predefined period. It affects the returns if redeemed within the specified period.

4. Historical performance: It shows the past performance of the funds. Although an investment decision should not depend entirely on past history, it provides insight into the fund.

Silver Funds VS Other Funds Category

The listed table shows how silver mutual funds are different from other mutual funds like gold funds, and hybrid funds.

Basis	Silver Funds	Gold Funds	Hybrid Funds
Primary Investment	Physical silver or Silver ETFs	Physical Gold or Gold ETFs	Mixture of equity and debt
Risk	High risk	High to moderate risk	Depends on the allocation
Return	Depends on silver price movements	Depends on gold price movements	Based on the allocation of assets
Diversification	Provides commodity exposure	Provides precious metal exposure	Balanced exposure to different asset categories

Benefits and Risks of Silver Mutual Funds

The benefits of silver mutual funds are listed below.

1. Portfolio diversification: These funds allow investors to diversify their portfolio by investing in physical silver or silver ETFs. It enables them to generate returns through silver price movements.

2. Professional management: It facilitates professional guidance for investors. Investors can easily invest in silver ETFs without having to manage the investment themselves.

3. Exposure to industrial demand: Since silver is used in various industrial productions, including solar panels, jewellery, electronics, and electric vehicles, it allows investors to gain from its growth potential. 

4. Secure and safe investment: Investors are allowed to purchase silver ETFs without having to physically purchase and incur the charges for its safe storage and maintenance.

The risks associated with silver mutual funds are listed below.

1. Price volatility: Since silver is used by different industries, its demand fluctuates with market conditions. Therefore, the price of silver fluctuates frequently in response to market movements.

2. Expense Ratio and Exit Load: This is the fee charged by the fund for maintaining the investors’ fund. It affects the total returns they earn. A high expense ratio can lower the total returns earned and reduce the efficiency of the investment.

3. Global Market Impact: Any global event or currency movement in the international market may result in changes in silver prices, since they are highly influenced by the global market.

4. Commodity Market Risk: The performance of the silver mutual fund highly depends on the price of silver in the market. Therefore, any changes in market conditions, economic conditions, government policies, or market demand and supply may affect the overall returns.

Who Should Consider And Avoid Silver Mutual Funds?

Investors who should consider investing in silver mutual funds are given below.

1. Diversification Seeker: Investors who aim to diversify their investments and seek exposure to a broader market beyond equity and debt securities can consider investing in silver mutual funds.

2. SIP-focused investor: Investors who prefer to invest gradually in smaller amounts through a systematic investment plan (SIP) are suitable for these funds.

3. Hedge Believers: Investors who aim to protect their investment from the impacts of global events or economic fluctuations can also choose to invest in silver funds.

4. Convenience Buyers: Investors who want to invest in silver without worrying about purity checks, storage facilities, and theft can choose to invest in silver funds.

Investors who should avoid investing in silver mutual funds are listed.

1. Risk-averse Investors: Investors whose risk tolerance is not high and who prefer stability over volatility can choose to avoid silver mutual funds.

2. Short-term traders: Investors seeking predictable returns or short-term gain through market volatility can avoid silver funds, since it tends to stay stagnant.

3. Cost-conscious purists: Investors who do not want to pay double fees, as some FoFs include extra maintenance charges alongside expense ratios, can avoid silver mutual funds.

4. Income-dependent investors: Investors who prefer to receive regular income or returns can avoid silver mutual funds.

How To Choose A Silver Mutual Fund?

Before investing in silver funds, investors must analyse and evaluate the funds thoroughly to align with their financial goals.

1. Fund performance: Investors must evaluate the fund’s performance over the last few years. This will provide them with an idea of the consistency of the fund’s performance.

2. Expense Ratio: They must consider the fund’s expense ratio, as it significantly impacts the overall returns earned by the investments. The higher the ratio, the lower the total returns will be.

3. Assets Under Management: They must also consider the total size of the fund. It ensures the number of investors who put their confidence in the fund.

4. Tracking Error: They should ensure that the silver fund strictly follows the silver price movements, without any gap. 

5. Match funds with investment goals: Investors must align their investment goals with the goals of the silver fund, so as to achieve expected results.

SIP vs Lump  Sum For Silver Funds

Investors can choose to invest in silver funds through both SIPs and Lump sums. Let’s understand which is more suitable for investors.

Basis	SIPs	Lump sum
Meaning	Investing a fixed amount at regular intervals	Investing a huge capital at once
Market timing	Reduces the need to time the market for investing	Requires right timing to achieve maximum returns
Risk	Lower impact on temporary movements	Highly impacts returns if invested when prices are at a peak
Returns	May provide stable returns over time due to cost averaging	Earn more returns if the silver price rises

Direct vs Regular Silver Funds

Let’s understand the difference between direct and regular silver funds.

Basis	Direct Silver Fund	Regular Silver Fund
Process	Investors select and manage the funds	Fund manager or advisors assist in selection and transaction of funds
Returns	Relatively higher because of lower costs	Lower due to high expenses
Suitable for	Experienced investors	Beginners or investors who seek guidance
How to invest	Directly through AMC or portals and websites	Through a broker, bank, or financial advisor

Taxation of Silver Mutual Funds

The tax treatment on capital gains of silver mutual funds depends on the holding period of the fund. 

1. Short-term capital Gains: If the investment is sold within 12 months of holding it, the gains earned will be considered short-term capital gains and taxed as per the investor’s taxable income slab.
2. Long-term Capital Gains: If the investments are sold after exceeding 12 months, the gains earned will be considered as long-term capital gains. A flat 12.5% tax is levied on the gain without indexation along with a 4% cess. 

FAQs