Best Silver ETFs to Invest in India
For decades, Indian households viewed silver as the poor man’s gold. But skip ahead to 2026, and the narrative has flipped entirely. Silver is now the tech man’s gold. As India pushes toward a green energy revolution, the demand for silver in photovoltaics and electric vehicle (EV) circuitry has sent prices on a wild, profitable ride.
If you're looking for the best silver ETF in India, you aren't just buying a precious metal; you're investing in the backbone of future technology. Unlike physical bullion, silver ETF funds offer a seamless, digital way to play this volatility without the headache of lockers, insurance, or purity concerns.
Why ETF Silver is Dominating Portfolios in 2026
Before we dive into the specific funds, let’s talk about why everyone is moving toward ETF silver instead of physical coins.
In the past, if you bought 10kg of silver, you’d pay a 3% GST, a hefty premium to the dealer, and then struggle to find a safe place to hide it. When you went to sell it, the jeweller would likely deduct melting charges or question the purity.
Silver ETF funds eliminate every single one of these frictions:
Instant Liquidity: You can sell ₹50 lakh worth of silver units in one click on the NSE.
Purity Benchmark: Every unit is backed by physical silver of 99.9% purity (LBMA standards).
No GST Leakage: You don't pay the 3% entry tax that physical buyers do.
Transparency: You see the live price on your screen, updated every second.
Deep Dive: Best Silver ETFs in India
The market has matured significantly. While there are over a dozen options, these five stand out based on their AUM (Assets Under Management), liquidity, and expense ratios.
1. Nippon India Silver ETF (SILVERBEES)
Nippon’s BeES series is legendary in India. This is arguably the best silver ETF in India for high-net-worth individuals and active traders.
Why it wins: It has the highest trading volume. If you need to exit a massive position during a market crash, you won't face slippage (the gap between the price you see and the price you actually get).
Strategy: Best for those who want to "swing trade" the silver price cycles.
2. ICICI Prudential Silver ETF
ICICI Prudential has become a favourite for retail SIP investors. They have managed to keep their tracking error—the difference between the actual silver price and the fund's NAV—remarkably low.
Why it wins: Consistency, it behaves exactly like the silver price chart, with very little lag.
Strategy: Ideal for long-term retirement portfolios.
3. Tata Silver ETF
Tata entered the market with a bang, offering a very competitive structure. In the volatility of late 2025 and early 2026, the Tata Silver ETF showed surprising resilience in its NAV management.
Why it wins: Trust and brand legacy. For many Indian investors, the Tata name is synonymous with security.
Strategy: Great for defensive investors who want to balance their equity risk.
4. Aditya Birla Sun Life (ABSL) Silver ETF
If you are a math-driven investor, ABSL is likely on your radar. They often offer one of the lowest expense ratios in the category.
Why it wins: Cost-efficiency. Over a 10-year period, a 0.10% difference in fees can save you lakhs in compounded costs.
Strategy: The budget-friendly pick for long-term wealth builders.
5. HDFC Silver ETF
HDFC’s massive distribution network makes this one of the fastest-growing silver ETF funds.
Why it wins: Integration. If you already use HDFC for your banking and demat, the seamless integration and reporting make it a no-brainer.
Strategy: Best for buy-and-hold investors who want a rock-solid, high-AUM fund that provides peace of mind through scale and bank-grade security.
The Dual Personality of Silver: Why 2026 is Different
To understand why you should invest now, you must look at silver’s two faces.
The Industrial Face: Silver is the best conductor of electricity on Earth. You cannot build a high-efficiency solar panel or a 5G base station without it. With India’s "Make in India" push for electronics, domestic demand is decoupling from global trends.
The Monetary Face: When inflation bites, or the rupee weakens, silver acts as a store of value. In early 2026, as global markets fluctuated, silver acted as a massive alpha generator, outperforming gold during the January rally.
| Fund Name | Expense Ratio | Tracking Error (Avg) | Liquidity Rank |
| Nippon India | 0.50% - 0.58% | Low | 1 |
| ICICI Prudential | 0.40% - 0.45% | Very Low | 2 |
| Aditya Birla | 0.35% - 0.40% | Medium | 4 |
| Tata Silver | 0.42% - 0.48% | Low | 3 |
| HDFC Silver | 0.40% - 0.50% | Low | 3 |
The Risks: What No One Tells You
While I’m a fan of the best silver ETF in India, you must be careful. Silver is a high beta asset. This means if gold moves up by 1%, silver might move up by 3%. But if gold falls by 1%, silver might crash by 4%.
The crash in February 2026, where silver dropped from its peak of ₹4 lakh/kg, was a brutal reminder for FOMO investors. If you can't stomach a 20% dip in a single month, silver might not be for you.
Taxation on Silver ETFs
The tax landscape for silver ETF funds changed recently. Gone are the days of indexation benefits for most debt-like instruments.
Holding < 12 Months: Gains are added to your income and taxed at your slab rate (up to 30%+).
Holding > 12 Months: Since the 2025-26 budget tweaks, most precious metal ETFs are taxed at a flat 12.5% LTCG rate.
Always consult your CA, as these rules can shift with every February budget.
Step-by-Step: How to Choose the Right Fund
Check the Volume: Open your trading terminal (Zerodha/Upstox) at 2:00 PM. Look at the Bid/Ask spread. If the gap between the buyer and seller is more than 0.5%, move to a more liquid fund like Nippon or ICICI.
Look at the Tracking Difference: Don't just look at the silver price; look at the fund's 1-year return versus the domestic silver price. If the fund is lagging by more than 1%, the fund manager is inefficient.
Start an SIP: Silver is too volatile for lump sum entries for beginners. A monthly SIP of ₹5,000 or ₹10,000 allows you to benefit from Rupee Cost Averaging.
Final Thoughts
Silver is no longer just a jewellery metal. It is the metal of the future. By choosing the best silver ETF in India, you are securing a slice of the global industrial boom while keeping your portfolio liquid and safe. Whether you prioritise the low costs of Aditya Birla or the massive liquidity of Nippon, the key is to stay invested for at least 3 to 5 years to ride out the volatility.
Frequently Asked Questions
1. What is a Silver ETF?
A Silver ETF (Exchange Traded Fund) is a mutual fund that tracks the domestic or international price of silver. It is traded on stock exchanges like NSE and BSE, allowing investors to gain exposure to silver without holding physical metal.
2. Are Silver ETFs safe to invest in?
Silver ETFs are considered relatively safe compared to physical silver, as they eliminate storage and purity risks. However, returns are subject to silver price volatility and market risks.
3. Which are the best Silver ETFs in India?
The best Silver ETFs in India are those with low expense ratios, high assets under management (AUM), minimal tracking error, and consistent returns. Popular options include ETFs offered by leading AMCs such as Nippon India, ICICI Prudential, and HDFC.
4. How can I invest in silver ETFs?
You can invest in silver ETFs through a demat and trading account using a stockbroker. Investors can buy or sell units during market hours just like equity shares.
5. What is the minimum investment required for Silver ETFs?
The minimum investment is usually the price of one ETF unit, which generally ranges between ₹50 and ₹100, making Silver ETFs accessible to retail investors.
6. Do Silver ETFs give dividends?
Silver ETFs do not pay dividends. Returns depend entirely on the appreciation or depreciation in silver prices, minus expenses.
7. What are the tax implications of Silver ETFs in India?
Silver ETFs are taxed as non-equity mutual funds. Capital gains are taxed based on the holding period, with indexation benefits available for long-term investments as per prevailing tax laws.
8. Are silver ETFs better than physical silver?
Silver ETFs are more cost-efficient, liquid, and transparent than physical silver. They avoid making charges, storage costs, and purity concerns associated with physical silver investments.
9. Can silver ETFs be used for portfolio diversification?
Yes, Silver ETFs help diversify portfolios by adding exposure to commodities, which often have a low correlation with equities and can act as a hedge against inflation.
10. What factors should I consider before investing in Silver ETFs?
Key factors include silver price trends, ETF expense ratio, tracking error, liquidity, taxation, and your overall investment horizon and risk tolerance.
