Silver ETFs' AUM Surges Past Rs 13,500 Crore in Just 3 Years: Report
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Synopsis
Silver ETFs have experienced significant growth, with their AUM surpassing Rs 13,500 crore in three years. The demand for silver as an investment option has surged, reflecting its vital role in various industries.
Key Takeaways
- Silver ETFs' AUM exceeds Rs 13,500 crore.
- 12 Silver ETFs are currently available in India.
- Investor interest has greatly increased since SEBI's approval.
- Silver ETFs provide a way to invest without physical ownership.
- The industrial demand for silver has risen by over 55%.
Mumbai, March (NationPress) Silver Exchange-Traded Funds (ETFs) have attracted considerable investor interest in the last three years, with their assets under management (AUM) exceeding Rs 13,500 crore as of January 2025, according to a report released on Saturday.
Currently, there are 12 Silver ETFs available in the Indian market, boasting over six lakh investor folios, as per data compiled by Zerodha Fund House.
The growth of these ETFs in India has been remarkable since the Securities and Exchange Board of India (SEBI) permitted asset management companies to introduce them in November 2021.
As Zerodha Fund House CBO Vaibhav Jalan stated, "The rising transaction volumes of silver ETFs indicate a clear increase in investor interest."
He also mentioned that these ETFs serve as an alternative to physical silver ownership, alleviating concerns regarding storage, security, and insurance, while allowing access to fluctuations in silver prices.
This uptick in interest illustrates the growing demand for silver as an investment avenue. Investors are progressively seeking ways to diversify their portfolios, and Silver ETFs present a straightforward and hassle-free method for exposure to this precious metal.
The demand for silver has consistently exceeded its supply since 2021. This adaptable metal is not only a prized commodity but also holds significant importance across various industries.
It finds extensive applications in solar energy, automotive manufacturing, digital photography, and jewelry.
Furthermore, silver's superior thermal properties and corrosion resistance make it a favored material in industrial manufacturing and fabrication.
According to estimates from The Silver Institute, global industrial demand for silver has surged by over 55 percent.
This increase is fueled by its rising applications in sectors such as automotive, technology, pharmaceuticals, and solar energy.
As industries continue to depend on silver, its investment attractiveness has also been reinforced, the report stated.
"Silver has the potential to contribute to both investment portfolios and modern industries," remarked Zerodha Fund House CEO Vishal Jain.
He emphasized that silver ETFs are a valuable resource for diversifying one’s portfolios and leveraging the unique attributes of the metal.
