Silver ETF on WebNotes

Zerodha Silver ETF

Wed, 20 May 2026 00:00:00 +0000

Zerodha Silver ETF offers passive exposure to silver prices via an exchange-traded fund.

Scheme parameters

Attribute	Value
Category	Silver ETF
Benchmark	Domestic silver price
TER	~0.35% to 0.50%
Backing	Physical silver held by custodian
Demat	Required
Exchange	NSE / BSE

How it works

Same as Gold ETF mechanics: AMC holds physical silver; ETF units track price.

When silver in portfolio?

Diversification beyond gold for precious metal exposure.
Industrial demand correlation (electronics, solar).
Higher volatility than gold (smaller market).

Risk

More volatile than gold.
Industrial demand cyclicality.
Storage / purity outsourced to AMC custodian (good for investors).

For most retail portfolios, silver is a small (5-10%) allocation alongside gold.

Gold and Silver ETF tax (India)

Tue, 19 May 2026 00:00:00 +0000

Gold ETFs, Silver ETFs, and their Fund-of-Funds wrappers are taxed in India per the post-2023 debt-MF framework: all gains at the investor’s slab rate, with no LTCG indexation benefit. The post-2023 debt mutual fund taxation reform materially changed the tax math for gold and silver ETF investors, who previously benefited from the indexation framework.

For Indian retail investors using gold ETFs or silver ETFs for portfolio diversification, the new tax treatment is a significant consideration when comparing against Sovereign Gold Bonds (SGB), physical gold, or other precious-metal vehicles.

Silver ETF India

Mon, 18 May 2026 00:00:00 +0000

Silver ETFs in India are exchange-traded funds backed by physical silver holdings, providing retail investors exposure to silver prices without the storage, authenticity and purity concerns of physical silver. The category was enabled by SEBI’s October 2021 framework on silver ETFs, with the first Indian silver ETFs launched in early 2022. The category complements Gold ETFs (the older and larger precious-metal ETF category in India) by extending passive precious-metal exposure to silver.

Taxation of gold ETFs and silver ETFs in India

Tue, 12 May 2026 00:00:00 +0000

Taxation of gold ETFs and silver ETFs in India is governed by the same framework as other “specified mutual funds” introduced by the Finance Act 2023. Gold ETFs hold physical gold (or gold-backed instruments); silver ETFs hold physical silver. Neither holds domestic equity, so both fail the 65% equity test and are classified as specified mutual funds. For units acquired on or after 1 April 2023, all capital gains are treated as short-term regardless of holding period and taxed at the investor’s income-tax slab rate. For units acquired before 1 April 2023, gains on units held for more than 36 months are LTCG at 20% with indexation under Section 112.