Silver exchange traded funds have seen a massive surge in assets under management in less than three years, crossing the ₹13,500 crore mark in January 2025.
SEBI allowed asset management companies to launch silver ETFs in November 2021. Since then, silver ETFs have seen massive growth. In January 2022, AUMs were Rs 123 crore and by January 2023 they grew to Rs 1651 crore. Silver ETF AUMs have seen the fastest growth in 2024, growing from Rs 3705 crore in January 2024 to Rs 13,566 crore by January 2025 – a 266 percent increase. According to data from Zerodha Fund House, twelve silver ETFs have crossed 6 lakh investor folios as of January 2025, growing from 1.9 lakh in January 2024.
This growth shows that Indian investors are investing in silver. As investors seek diversification and exposure to commodities, silver ETFs offer a simple and hassle-free way to invest in this precious metal.
Vaibhav Jalan, CBO, Zerodha Fund House, said, “The rising transaction volumes of silver ETFs are a clear indication of the growing interest from investors. These ETFs offer an alternative to owning physical silver, address concerns about storage, security and insurance, and provide access to silver price movements.”
While silver has been tracking gold prices amid global geopolitical and geoeconomic uncertainties, the overall industrial demand for silver has increased by over 55 per cent driven by its applications in various industries including automotive, technology, pharmaceuticals and solar energy.
