An average mobile phone contains 0.3 grams of silver and 25-30 grams of silver is needed during the production of an electric car. The center of the solar panel needs 20 grams of silver. Silver is also used in electronics, brazing, jewelery and tableware. The increase in these properties has made silver an investor’s choice.
So invest in Silver ETFs
India is the third largest importer of silver, after the US and Germany. India is also included in the top 20 silver producing countries. This led the country’s AMCs to launch an investment vehicle, the Silver ETF. The value of a metal, be it gold, silver, diamond or platinum, is determined by its purity, which is difficult to determine. That’s why investors are making money by investing in ETFs without actually holding them.
1,400 crore in cash
Last year, five major mutual funds in India (ICICI Prudential AMC, Nippon India AMC, Aditya Birla Sun Life AMC, DSP Mutual Fund and HDFC AMC) announced their plans to launch Silver ETFs. In January 2021, ICICI Prudential AMC launched the first India Silver ETF, India’s first silver fund. According to data provided by Morningstar India this year, the fund has received Rs 1,400 crore from silver ETFs till the end of July.
Investing in Silver ETFs in India can be done through mutual fund managers, financial advisors and mutual fund platforms. You need to do your KYC on the platform along with Aadhaar and PAN. Link both Aadhar and PAN. Explain that apps like Grow, Zerodha, Upstox and Paytm Money can be used to make money. You can go to a mutual fund advisor or a chartered accountant. It is important to consider mutual house ETF offerings as they have different strategies and fees. Mutual fund Houses are changing managers. So keep an eye on that too.
Recommendations for managers and investors
Silver ETFs vary by mutual fund house. Silver based ETF has received green signal from Securities and Exchange Board of India (SEBI). Guidelines for fund managers and investors were issued by SEBI on November 25 last year.