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How To Buy Silver ETF In India

Silver ETF is a commodity based ETF offered by mutual fund houses wherein 95% of the corpus is invested in silver or silver related derivative products like Exchange Traded Commodity Derivatives (ETCDs) having silver as the underlying product. The investments in silver ETCD cannot exceed 10% of the corpus of the scheme.

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How To Buy Silver ETF In India

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  1. How To Buy Silver ETF In India

  2. silver ETF is a commodity based ETF offered by mutual fund houses wherein 95% of the corpus is invested in silver or silver related derivative products like Exchange Traded Commodity Derivatives (ETCDs) having silver as the underlying product. The investments in silver ETCD cannot exceed 10% of the corpus of the scheme. The physical silver held as a part of silver ETF will be kept with third party custodians and is required to be physically audited by statutory auditors. How To Buy Silver ETF In India

  3. before scheme expenses and tracking error. Lower the tracking error, better it is for the investor. Expense ratio for these funds range between 0.55% and 1.18%, according to Value Research -a mutual fund tracking firm. An investor can purchase and sell units of a gold ETF on the stock exchange. He/she, however, needs a demat account to purchase the units of gold ETF.

  4. A Silver ETF negates the need to hold and store physical gold. But it has one drawback: it doesnʼt allow you to do a systematic investment plan. Also, one may find it painful to keep placing buy orders at regular intervals on the stock exchange. A few brokers allow purchase of gold ETF units at a predetermined interval, say monthly or weekly using Equity Systematic Investment Plan (Equity SIP). However, in that case the investor needs to specify the number of units to be bought at the time of each purchase. Not everyone is comfortable with such an arrangement.

  5. To overcome all these issues and allow investors to buy gold ETFs of a fixed amount per month (or at a regular interval of choice) without insisting on a demat account, the mutual funds came out with gold saving funds. These are feeder funds that buy units of gold ETF. These schemes allow investors to make SIPs and help them allocate money in a staggered manner. Of course, this convenience comes at an additional layer of costs.

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