Silver ETFs Shine This Dhanteras With Nippon India Fund Posting Strong Three-Year Gains

Marginal investors looking to buy silver this Dhanteras can invest through exchange-traded funds as physical silver requires a hefty upfront amount. The minimum investment depends on the market price of a single unit, which usually ranges from fifty rupees to a few hundred rupees based on the unit-to-gram ratio. Investors buy units through a stock exchange using a Demat and trading account without any fixed minimum rupee limit set by the fund house.

Performance

Nippon India Silver ETF SILVERBEES has delivered over one hundred forty-five percent returns in the last three years, with its NAV priced at one hundred seventy-four rupees and eighty paise today while the silver rate in India sits around one lakh eighty-four thousand five hundred rupees per kg. The fund gave over twenty-seven percent return to upfront lump-sum investors. In the last two years, it delivered over thirty-nine percent annualised return, while the three-year annualised return stands at around thirty-seven percent.

Expert Views

SEBI-registered investment expert Anuj Gupta noted that silver is a risky asset with both investment and industrial value. Gupta stated that silver prices are expected to rise after the US Midterm Elections alongside an artificial intelligence meltdown and low interest rates driven by cooling crude oil prices, potentially touching three lakh rupees in India during Samvat 2083. Pankaj Mathpal, MD and CEO at Optima Money Managers, advised investors to check category returns when comparing silver ETF plans to ensure the fund trades at a lower premium.

Context

Dhanteras is traditionally considered an auspicious day for buying precious metals like gold and silver in India. Silver ETFs offer a convenient digital alternative to physical bullion, removing storage and purity concerns for retail participants.