With silver prices on an upward trend, driven by macroeconomic and geopolitical factors, Zerodha Fund House has introduced the Zerodha Silver ETF, offering investors a new avenue to gain exposure to the precious metal. The New Fund Offer (NFO) opens for subscription on March 10, 2025, and will close on March 18, 2025.

🔹 Why Silver? Market Performance & Outlook

Strong Rally in Silver Prices

• Silver surged 15% in 2024, with an additional 11% gain in early 2025.

Key Drivers of Growth

• Declining U.S. interest rates
• Escalating geopolitical tensions
• Evolving trade policies under the Trump administration

Analysts’ Outlook

• Silver is expected to stay well-supported in the medium to long term due to its dual role as an investment and industrial asset.

Zerodha’s Vision Behind the Silver ETF

Vishal Jain, CEO, Zerodha Fund House:

“Silver has the potential to play a role in both investment portfolios and modern industries. Our Silver ETF is a valuable tool for diversification and for tapping into silver’s unique market dynamics.”

Vaibhav Jalan, CBO, Zerodha Fund House:

“Silver is witnessing growing demand in sectors like technology and clean energy. This ETF allows investors to participate in that evolving landscape.”

About the Zerodha Silver ETF

• Fund Category: Open-ended Exchange-Traded Fund (ETF)
• Benchmark: Domestic prices of physical silver
• Investment Objective:
  • Aim to generate returns in line with domestic silver prices, subject to tracking errors

Portfolio Allocation

Asset Class	Allocation (%)
Silver and silver-related instruments	5% – 100%
Debt, money market, cash equivalents	0% – 5%

• Portfolio composition ensures primary exposure to silver, with a small margin for liquidity and risk management.

Investment Details

• Minimum Investment Amount: ₹1,000
• Subsequent Investments: In multiples of ₹1,000
• Initial NAV (Net Asset Value): ₹10 per unit
  • Each unit represents 1/10,000th of the silver price per kg

Risk Considerations

• Risk Level: Very High
  • As per the Risk-o-Meter of both the Scheme and the Benchmark
• Volatility Factors:
  • Silver prices are sensitive to global macroeconomic conditions, currency fluctuations, and policy shifts
  • Returns are not guaranteed and can be impacted by tracking errors and market volatility
• Investor Suitability:
  • Best suited for investors with a high-risk appetite and long-term investment horizon
  • Recommended to consult a financial advisor before investing

How to Invest

• Applications for the NFO can be made through:
  • Zerodha Coin
  • CAMS platform
• Further Information:
  Visit the Zerodha Fund House website for scheme documents, performance details, and FAQs.

Conclusion

The Zerodha Silver ETF offers a timely and efficient way for investors to capitalize on the bullish momentum in silver. With its strong fundamentals, increasing industrial demand, and potential as an inflation hedge, silver is emerging as a compelling asset class — and Zerodha’s ETF is well-positioned to help investors harness that potential.