Zerodha Fund House Introduces Silver ETF Amid Rising Precious Metal Demand

New Investment Avenue with Minimum Application of ₹1,000

Zerodha Fund House has launched a Silver Exchange-Traded Fund (ETF), allowing investors to track domestic silver prices. The open-ended ETF scheme, which debuted on March 10, will remain open for subscription until March 18.

With silver prices nearing ₹99,000 per kg, this offering comes amid growing investor interest in precious metals. The minimum investment amount for the Zerodha Silver ETF is ₹1,000, with additional investments allowed in multiples of that amount.

Fund Objective and Portfolio Allocation

The Zerodha Silver ETF is designed to generate returns based on silver price movements in India, subject to tracking error, the company stated in a press release.

• Primary Investment: 90-100% of the portfolio will be allocated to silver and silver-related instruments, ensuring investors gain direct exposure to the metal.
• Secondary Allocation: The remaining funds will be invested in debt and money market instruments, as well as cash and cash equivalents, to maintain liquidity.

CEO Highlights Silver’s Investment Potential

Zerodha Fund House CEO Vishal Jain emphasized silver’s dual role as both a precious and industrial metal, making it an effective portfolio diversification tool.

“Silver has the potential to play a role in both investment portfolios and modern industries. With its dual identity, our Silver ETF provides investors with a valuable tool to diversify their portfolios and capitalize on the metal’s unique characteristics,” Jain said.

How to Invest in Zerodha Silver ETF

Investors can apply for the Zerodha Silver ETF through:

• Zerodha Coin (Zerodha’s mutual fund investment platform)
• CAMS (Computer Age Management Services)

The starting Net Asset Value (NAV) is ₹10 per unit, making it accessible for retail investors.

Silver Prices and Market Trends

• Rising Silver Prices: Over the past months, silver prices have surged, approaching ₹99,000 per kg, fueled by increasing industrial demand and investor interest.
• Growing Demand in Technology and Clean Energy: Vaibhav Jalan, CBO of Zerodha Fund House, highlighted silver’s expanding role in technology and renewable energy, driving its market value.

“As demand for silver accelerates across technology and clean energy, our new Silver ETF provides investors an opportunity to participate in this evolving market,” Jalan said.

With its low entry threshold and direct silver exposure, the Zerodha Silver ETF presents a compelling investment option for those looking to diversify their portfolios with a precious metal-backed asset.