AUM of Silver ETFs Crosses 13,500 Crs within 3
years: Zerodha Fund House
Mumbai,
12 March, 2025: In
November 2021, SEBI (Securities and Exchange Board of India) allowed Asset
Management companies to launch silver ETFs (Exchange-Traded Funds). Since then,
silver ETFs have seen massive growth (as shown in below graph) in AUM, crossing
the 13,500 cr mark as of Jan 2025. There are 12 Silver ETFs with more than 6
Lakh investor folios across them as of Jan 2025.
Talking
about the historical transaction volumes of Silver ETFs, Vaibhav Jalan, CBO
of Zerodha Fund House said, “The increasing transaction volumes of
silver ETFs are a clear indication of growing investor interest. These ETFs
offer an alternative to physical silver
ownership, addressing concerns about storage, security, and insurance while
providing access to silver's price movements.”
Silver Demand has Far Surpassed the Supply
Since
2021, the demand for silver has outpaced its supply. This versatile metal is
both a valuable commodity and a crucial component in various industries,
including solar energy and automotive manufacturing. Silver's diverse
applications, from industrial uses to jewellery, digital photography and
investment also contribute to its demand.
Industrial Demand for Silver has Increased by More than 55%
According
to the estimates by ‘The Silver Institute’, the overall industrial demand for
Silver has increased by more than 55% driven by its applications across various
industries, including automotive, technology, pharmaceuticals, and solar
energy. Silver is also used in manufacturing and industrial fabrication since
it does not corrode and has good thermal properties.
Vishal Jain,
CEO of Zerodha Fund House says, “Silver has the potential to play a role in both investment
portfolios and modern industries. Silver ETFs are a valuable tool to diversify
one’s portfolios and capitalize on the metal's unique characteristics.”
In a
three-year period, from (Jan 2022- Jan 2025), the AUM of Silver ETFs have
crossed ₹13,500 Crs! Also, as of Jan 2025, with over 6 lakh investor folios,
it's clear that Indian investors are taking exposure to silver. As investors seek diversification and exposure
to commodities, Silver ETFs provide a simple and hassle free way to take
exposure to this precious metal.
About Zerodha Fund House:
Zerodha AMC is the Asset Management Company for the schemes of Zerodha Fund
House and a joint venture between Zerodha Broking Ltd and Smallcase
Technologies Pvt Ltd. Zerodha Fund House will enable a new generation of
investors to access the capital markets with the same principles of simplicity,
cost-effectiveness, and transparency to investment products as its parent
organizations. Learn more at https://www.zerodhafundhouse.com/
Disclaimer: This is
not investment advice or buy or sell recommendation. Readers should do their
own research and analysis or consult an investment adviser/s before investing
in schemes of mutual funds. Past performance may or may not sustain in future
and should not be used as a basis for comparison with other investments.
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