HDFC Silver ETF: A Complete Investor’s Guide (2025 Edition)
💡 Introduction: Why Silver ETFs Are Gaining Popularity in India
The surge in inflation, market volatility, and uncertainty around global commodities has pushed many investors toward precious metals — particularly silver. While gold has traditionally dominated the safe-haven asset space, silver is emerging as the new star of diversified portfolios.
With the HDFC Silver ETF, investors can now participate in the silver market without the hassle of physically buying, storing, or safeguarding the metal. It’s a convenient, SEBI-regulated, exchange-traded fund (ETF) that tracks the price of silver in India.
Let’s explore in depth what the HDFC Silver ETF is, how it works, its share price, NAV, expense ratio, and whether it fits your investment goals in 2025.
🪙 What Is HDFC Silver ETF?
The HDFC Silver ETF is an Exchange Traded Fund launched by HDFC Asset Management Company (HDFC AMC) that aims to track the domestic price of silver. The fund invests primarily in physical silver of 99.9% purity, held securely in vaults, and its units are traded on stock exchanges like NSE and BSE.
It provides a transparent and cost-efficient way to invest in silver without worrying about purity, making charges, or storage.
🔹 Key Features of HDFC Silver ETF:
| Feature | Details |
|---|---|
| Type | Commodity-based Exchange Traded Fund |
| Underlying Asset | Physical Silver (99.9% purity) |
| Fund Manager | HDFC Asset Management Company Ltd |
| Benchmark | Domestic price of silver (based on LBMA silver prices in INR) |
| Mode of Investment | Listed on NSE/BSE |
| Minimum Investment | 1 unit (traded price) |
| Regulation | SEBI-approved silver ETF |
This ETF allows both short-term traders and long-term investors to take exposure to the silver market efficiently.
📊 How Does HDFC Silver ETF Work?
When you buy units of the HDFC Silver ETF, the fund uses your investment to purchase physical silver bullion. Each unit represents a portion of the underlying silver holdings.
The price of the ETF unit (and its NAV) changes in proportion to silver price movements in the domestic market.
- When silver prices rise → ETF NAV increases.
- When silver prices fall → ETF NAV decreases.
The fund’s performance closely tracks global silver trends, adjusted for INR movements and expenses.
💰 HDFC Silver ETF Share Price (Live Market)
The HDFC Silver ETF share price represents the current trading value per unit on the NSE or BSE.
As of October 2025, the HDFC Silver ETF trades in the range of ₹75–₹85 per unit (indicative — actual prices vary daily based on silver market movement).
You can check the live share price on:
- NSE India – HDFC Silver ETF
- BSE India – HDFC Silver ETF
- HDFC Mutual Fund official website
📈 Factors Influencing HDFC Silver ETF Share Price:
- Global Silver Prices (USD/oz)
- INR-USD Exchange Rate
- Demand-Supply Dynamics in the Silver Market
- Inflation Trends and Interest Rates
- Industrial Usage of Silver (solar, electronics, EVs)
Because silver has both monetary and industrial demand, it reacts differently than gold — often outperforming during industrial growth phases.
📈 HDFC Silver ETF NAV (Net Asset Value)
NAV is the per-unit value of the ETF, reflecting the total silver value minus expenses, divided by the number of units.
As of the latest update:
- HDFC Silver ETF NAV (Direct Plan): ₹83.45
- HDFC Silver ETF NAV (Regular Plan): ₹82.92
(Values fluctuate daily based on silver spot rates and currency exchange.)
NAV is updated daily on the HDFC Mutual Fund website and AMFI (Association of Mutual Funds in India) portal.
📊 How NAV Differs from Market Price:
Sometimes, ETF share prices may differ slightly from NAV due to:
- Market demand/supply
- Exchange liquidity
- Transaction costs
However, HDFC maintains tight tracking error control, ensuring minimal deviation between NAV and traded price.
🏦 HDFC Silver ETF Fund of Fund (FoF): An Easier Option
If you don’t have a demat account or are unfamiliar with stock exchanges, the HDFC Silver ETF Fund of Fund (FoF) is a simpler alternative.
This mutual fund invests directly in the HDFC Silver ETF, allowing you to access the same benefits without trading on the stock market.
🔹 Key Highlights of HDFC Silver ETF FoF:
| Parameter | Details |
|---|---|
| Investment Type | Open-ended mutual fund |
| Underlying Asset | HDFC Silver ETF |
| Plans | Regular & Direct |
| Options | Growth & IDCW (Income Distribution Cum Withdrawal) |
| Minimum SIP Investment | ₹500 |
| Minimum Lumpsum | ₹100 |
The FoF structure makes it accessible for traditional mutual fund investors who prefer SIP investments or manual redemption options.
💼 HDFC Silver ETF FoF Regular Growth
The HDFC Silver ETF FoF – Regular Growth plan is designed for investors who prefer advisory or distributor-led investments.
📊 Features:
- Invests entirely in HDFC Silver ETF units
- Growth option compounds returns over time
- Includes distributor commission (slightly higher expense ratio)
Ideal For:
Investors who prefer guided mutual fund investing or purchase via financial advisors.
💼 HDFC Silver ETF FoF Direct Growth
The HDFC Silver ETF FoF – Direct Growth plan is ideal for self-directed investors who invest directly via the HDFC Mutual Fund website or app, avoiding distributor commissions.
📊 Features:
- Lower expense ratio
- Compounded growth benefits
- Best suited for long-term investors with independent decision-making
Ideal For:
Cost-conscious investors seeking higher net returns.
💸 HDFC Silver ETF Expense Ratio
The expense ratio represents the annual management cost charged by the fund to manage and operate the ETF.
| Plan | Expense Ratio (Approx.) |
|---|---|
| HDFC Silver ETF | 0.40% – 0.60% |
| HDFC Silver ETF FoF (Direct) | 0.60% – 0.80% |
| HDFC Silver ETF FoF (Regular) | 1.00% – 1.20% |
A lower expense ratio enhances long-term returns, especially in commodity ETFs where margins are thin.
HDFC AMC maintains a competitive fee structure, ensuring efficient performance with minimal tracking error.
📈 Performance Overview: HDFC Silver ETF Returns (as of 2025)
| Period | HDFC Silver ETF Returns | Benchmark Silver Returns |
|---|---|---|
| 6 Months | +12.8% | +12.5% |
| 1 Year | +22.4% | +21.9% |
| Since Launch (CAGR) | +14.5% | +14.2% |
The fund has consistently mirrored silver’s strong upward trajectory, benefiting from rising industrial demand and inflationary trends globally.
🪙 Benefits of Investing in HDFC Silver ETF
- ✔️ Pure Silver Exposure: Tracks real-time silver prices.
- ✔️ Hassle-Free Ownership: No storage or purity concerns.
- ✔️ Transparency: NAV published daily.
- ✔️ Diversification: Low correlation with equities and bonds.
- ✔️ Hedge Against Inflation: Silver often rises when fiat currency weakens.
- ✔️ Liquidity: Easily tradable on NSE/BSE.
- ✔️ Accessibility: Available both as ETF and FoF.
⚖️ Risks Associated with HDFC Silver ETF
- Price Volatility: Silver prices can be highly volatile due to industrial demand and speculative trading.
- Currency Risk: INR depreciation/appreciation affects returns.
- Tracking Error: Minor deviation from benchmark silver price.
- Short-Term Uncertainty: Returns may fluctuate in the short run.
However, for long-term investors, silver’s cyclical nature often balances out volatility, especially as industrial usage grows (EVs, solar panels, electronics).
💬 Questionnaire-Based Investment Guide
❓Q1: What is the objective of HDFC Silver ETF?
To generate returns that closely correspond to the performance of domestic silver prices before expenses.
❓Q2: What is the difference between HDFC Silver ETF and HDFC Silver FoF?
The ETF requires a demat account and trades on stock exchanges, whereas the FoF can be purchased like a normal mutual fund.
❓Q3: What is the minimum investment in HDFC Silver ETF?
1 unit (approx. ₹75–₹85), depending on market price.
❓Q4: Can I start a SIP in HDFC Silver ETF?
No SIPs in ETF directly, but you can start a SIP in HDFC Silver ETF FoF.
❓Q5: Is HDFC Silver ETF good for short-term trading?
It’s more suited for medium to long-term investors (2–5 years) seeking portfolio diversification.
❓Q6: How can I buy HDFC Silver ETF?
- Through your broker’s trading platform (ETF)
- Or via HDFC Mutual Fund website (FoF)
❓Q7: What are the tax implications?
Treated as non-equity mutual fund:
- Short-term (<3 years): Taxed as per income slab.
- Long-term (>3 years): 20% with indexation benefit.
❓Q8: What is the expected return of HDFC Silver ETF?
Returns depend on silver market trends; historical CAGR is around 12–15% over 3 years.
❓Q9: Who should invest in this ETF?
Investors seeking inflation hedge, portfolio diversification, and exposure to commodities.
❓Q10: What is the lock-in period?
No lock-in; it’s open-ended and can be sold anytime during market hours.
🧮 HDFC Silver ETF vs Gold ETF
| Feature | HDFC Silver ETF | Gold ETF |
|---|---|---|
| Asset | Physical Silver | Physical Gold |
| Industrial Demand | High | Moderate |
| Price Volatility | Higher | Lower |
| Inflation Hedge | Strong | Strong |
| Liquidity | High | High |
| Long-Term Growth Potential | High (Industrial Demand Driven) | Stable |
If you already hold gold ETFs, silver ETFs can balance your commodity exposure.
🌍 Global Outlook on Silver (2025–2030)
Analysts project silver to outperform gold due to:
- Expansion in EV manufacturing and solar industries.
- Rising industrial applications in electronics, batteries, and semiconductors.
- Depleting global silver reserves.
This structural demand makes HDFC Silver ETF a strong candidate for long-term portfolio growth.
📦 How to Invest in HDFC Silver ETF / FoF
🧭 Option 1: Through Demat Account
- Log in to your broker’s platform (Zerodha, Groww, Upstox, etc.)
- Search HDFC Silver ETF (HDFCSILVERETF)
- Buy units at market price
🧭 Option 2: Without Demat Account
- Visit HDFC Mutual Fund Website
- Choose HDFC Silver ETF Fund of Fund
- Select Direct/Regular plan
- Invest via SIP or Lumpsum
🪙 Expert Opinion: Should You Invest in HDFC Silver ETF in 2025?
Yes — if you’re looking for:
- A low-cost entry into commodities
- An inflation hedge
- Portfolio diversification beyond equity and debt
- Exposure to the industrial growth story of silver
However, silver’s short-term volatility means you should:
- Invest with a 3–5 year horizon
- Allocate 5–10% of your total portfolio to silver
⚠️ Disclaimer (Important)
Disclaimer: The information provided in this article is for educational and informational purposes only. It does not constitute financial, investment, or tax advice. Mutual fund and ETF investments are subject to market risks, including the possible loss of principal. Investors should consult their financial advisor before making investment decisions. Past performance does not guarantee future results.
🧾 Conclusion: Is HDFC Silver ETF a Good Investment in 2025?
Yes — the HDFC Silver ETF stands out as a trusted, transparent, and cost-efficient silver investment option in India.
It combines HDFC AMC’s strong fund management with the potential of silver’s global industrial growth, offering investors a balanced mix of safety and growth potential.
If you seek:
- Ease of investment
- High liquidity
- Inflation protection
- And diversification from traditional equity-debt portfolios,
then the HDFC Silver ETF and its FoF variants are worth considering in 2025 and beyond.
