Nippon India Silver ETF hits ₹10,000-cr AUM as investors demand surges

Nippon India Silver Exchange-Traded Fund (ETF) has crossed ₹10,000 crore in Assets Under Management (AUM), marking a major milestone for silver-focused investment products in India. The surge reflects the increasing acceptance of Silver ETFs as a mainstream asset class and highlights a broader trend of investors seeking alternatives beyond traditional equity and debt instruments.

 

Exchange-Traded Funds (ETFs) are investment vehicles that hold a diversified basket of assets—such as stocks, bonds, or commodities—and trade on stock exchanges like individual securities. They are designed to track the performance of specific indices, sectors, or asset classes, providing investors with low-cost, liquid, and diversified exposure.

 

The Nippon India Silver ETF is listed on the stock exchange and primarily invests in physical silver and/or Exchange-Traded Commodity Derivatives (ETCDs) linked to silver. According to the Nippon India Mutual Fund website, the investment objective of the scheme is to generate returns that closely correspond to the performance of physical silver in the domestic market, before expenses and subject to tracking errors.

 

Commenting on the development, Vikram Dhawan, head – commodities and fund manager at Nippon India Mutual Fund, noted that Silver ETFs in India have gained momentum by transforming what was once a cumbersome physical investment into a simple, transparent, and regulated product.  "Investors who previously relied on buying coins or bars are increasingly finding ETFs to be a more efficient option, as they eliminate concerns around purity, storage, and liquidity. This shift comes at a time when global demand for silver is on the rise, driven by sectors such as solar energy, electric vehicles, and electronics. As a result, Silver ETFs are becoming a natural complement to gold in Indian investment portfolios," said Dhawan. 

What’s fueling the surge in Silver ETF investments

According to a statement by Nippon India Mutual Fund, several factors have contributed to the growing popularity of silver ETFs. Among them are strong global demand, particularly from industrial use cases, and the increasing appeal of silver as a diversification tool. Seen as a higher-beta counterpart to gold, silver offers tactical upside in portfolios.  Additionally, the logistical drawbacks of traditional physical silver—such as storage and purity concerns—make ETFs a far more convenient alternative. Being dematerialised and exchange-traded, these funds offer price transparency, high liquidity, and quick entry and exit options via platforms like NSE and BSE. Unlike physical silver, they also eliminate making charges, further enhancing their cost-efficiency.