Silver exchange-traded funds (ETFs) in India have experienced remarkable growth, with Assets under Management (AUM) surging 266% to ₹13,566 crore by January 2025. This surge follows SEBI’s decision in November 2021 to allow Asset Management Companies to launch silver ETFs, marking a significant shift in the investment landscape. In January 2022, the AUM of silver ETFs stood at just ₹123 crore, growing to ₹1,651 crore by January 2023. The most significant increase occurred in 2024, as AUMs jumped from ₹3,705 crore in January 2024 to ₹13,566 crore by January 2025.

Investor interest in silver ETFs has also risen sharply, with twelve silver ETFs collectively crossing 6 lakh investor folios as of January 2025, up from 1.9 lakh the previous year, according to data from Zerodha Fund House. This growth suggests that Indian investors are increasingly turning to silver as a means of diversification and exposure to commodities.

Vaibhav Jalan, CBO of Zerodha Fund House, noted, “The rising transaction volumes of silver ETFs are a clear sign of growing investor interest. These ETFs provide a convenient alternative to physical silver ownership, addressing concerns about storage, security, and insurance, while offering access to silver’s price movements.”

The surge in silver ETF popularity comes amid global geopolitical and geoeconomic uncertainties, with silver prices tracking gold. Moreover, industrial demand for silver has seen a significant uptick, rising more than 55% due to its increasing applications in sectors such as automotive, technology, pharmaceuticals, and solar energy.