Tata Silver ETF: Should You Invest in It in 2025? NAV, Returns, and Complete Review
🌐 Introduction
In a world driven by equity and gold investments, silver has quietly become a dark horse in the commodity market. The growing demand for silver in renewable energy, EVs, and electronics has turned investor attention toward this precious metal.
Among India’s silver investment options, the Tata Silver ETF has emerged as a trusted choice, offering an easy, transparent, and regulated way to invest in silver without physically buying it.
But what exactly is Tata Silver ETF? How does it perform? And most importantly — is it a good investment in 2025?
Let’s explore everything you need to know about Tata’s silver fund and whether it fits your investment strategy.
💎 What is Tata Silver ETF?
The Tata Silver ETF is an exchange-traded fund (ETF) launched by Tata Mutual Fund, designed to track the domestic price of silver. In simpler terms, it allows investors to participate in silver price movements without holding physical silver.
Each unit of Tata Silver ETF represents physical silver of 99.9% purity held by the fund in vaults, as per SEBI guidelines. The fund’s performance closely mirrors the spot price of silver in the Indian market.
📘 Fund Details (As of 2025):
| Particulars | Details |
|---|---|
| Fund Name | Tata Silver ETF |
| Fund House | Tata Mutual Fund |
| Benchmark Index | Domestic Silver Price (based on LBMA silver price) |
| Type | Open-ended Exchange Traded Fund |
| Asset Class | Commodity – Silver |
| Launch Date | March 2022 |
| Minimum Investment | 1 unit (via demat) |
| Expense Ratio | Around 0.45% – 0.55% |
| Underlying Asset | Physical Silver (99.9% purity) |
🗓️ When Did Tata Silver ETF Launch?
The Tata Silver ETF was officially launched in March 2022, after SEBI allowed mutual funds to introduce silver ETFs in India.
Since its inception, Tata Silver ETF has steadily gained investor interest, offering a regulated and convenient way to gain exposure to silver as an asset class.
📈 Tata Silver ETF Share Price (2025 Update)
The Tata Silver ETF share price (or market price per unit) is directly linked to the prevailing silver rate in India.
As of October 2025, the ETF trades approximately between ₹75 and ₹80 per unit, depending on silver’s global and domestic price movements.
The price fluctuates daily on stock exchanges like NSE and BSE, and investors can buy or sell these units through any demat account or brokerage app (like Zerodha, Groww, or Upstox).
💰 Tata Silver ETF NAV (Net Asset Value)
The NAV (Net Asset Value) represents the per-unit value of the fund’s underlying assets (silver holdings minus liabilities).
The Tata Silver ETF NAV is published daily by Tata Mutual Fund and usually stays close to its market price, though minor deviations (premium/discount) may occur due to trading demand.
🧾 Example:
If 1 unit represents 1 gram of silver and the spot price of silver is ₹80 per gram, then the ETF’s NAV will hover near ₹80.
You can check the latest NAV anytime on the Tata Mutual Fund official website or on mutual fund aggregator platforms like MoneyControl and Value Research.
🧩 Tata Silver ETF Fund of Fund (FoF)
Not every investor has a demat account to trade ETFs directly. To address this, Tata Mutual Fund launched the Tata Silver ETF Fund of Fund (FoF) — a mutual fund that invests primarily in the Tata Silver ETF itself.
💡 Key Features of Tata Silver ETF FoF:
- No need for a demat account
- Can invest via SIP or lump sum
- Available in Direct Growth and Regular Growth plans
- Ideal for retail investors who prefer a mutual fund route
📊 Minimum Investment:
- Lump Sum: ₹5,000
- SIP: ₹500 per month
This FoF structure offers the same exposure to silver prices but through a mutual fund mechanism, making it accessible to a wider investor base.
🔁 Tata Silver ETF FoF Direct Growth Plan
The Direct Growth plan under Tata Silver ETF FoF is specifically designed for investors who prefer:
- Lower expense ratio (as there are no intermediary commissions)
- Higher returns potential over the long term
- Transparent performance tracking
Investors can opt for this plan via Tata Mutual Fund’s official website or through any direct mutual fund platform.
📈 Expense Ratio (as of 2025):
Approximately 0.40% to 0.50%, which is quite competitive compared to similar funds.
💹 Tata Silver ETF Performance Overview (2022–2025)
Since its launch in 2022, Tata Silver ETF has delivered steady returns in line with the silver market’s movement.
📊 Historical Performance Snapshot:
| Period | Silver ETF Return | Benchmark Silver Price Return |
|---|---|---|
| 1 Year | ~16% | ~15.8% |
| 2 Years | ~25% | ~24.7% |
| Since Inception | ~28% | ~27.6% |
The fund’s tracking error (difference between ETF return and benchmark) has remained low, around 0.2–0.3%, indicating efficient fund management.
🪙 Why Invest in Tata Silver ETF?
1. Diversification
Silver acts as a hedge against equity volatility and inflation. Adding 5–10% of silver exposure to your portfolio enhances diversification.
2. Industrial Demand Growth
Silver demand is booming due to its use in solar panels, electronics, and electric vehicles. This provides a strong fundamental backing for future price appreciation.
3. Inflation Hedge
Just like gold, silver tends to perform well during periods of inflation or currency devaluation.
4. Convenience
ETFs eliminate the hassle of buying, storing, and insuring physical silver.
5. Liquidity
You can buy or sell Tata Silver ETF units anytime during trading hours on the stock exchange, ensuring easy liquidity.
⚖️ Risks of Investing in Tata Silver ETF
While silver is a promising asset, it also comes with certain risks investors should understand:
- Price Volatility: Silver prices can fluctuate significantly due to global economic and industrial factors.
- No Dividends: ETFs don’t pay interest or dividends — returns depend solely on price appreciation.
- Currency Risk: Since silver is priced internationally, fluctuations in the rupee-dollar exchange rate affect returns.
- Tracking Error: Slight deviations may occur between the ETF’s performance and actual silver prices.
📊 How to Invest in Tata Silver ETF
You can invest in Tata Silver ETF in two main ways:
🅐 Via Stock Exchanges (ETF Route):
- Open a demat and trading account.
- Search for Tata Silver ETF (NSE or BSE).
- Place a buy order like any stock.
🅑 Via Fund of Fund (FoF Route):
- Visit Tata Mutual Fund’s website.
- Choose Tata Silver ETF Fund of Fund.
- Invest through SIP or lump sum without a demat account.
Both routes provide the same exposure to silver price movement.
💸 Tata Silver ETF Expense Ratio
The expense ratio indicates the annual cost charged by the fund to manage your investment.
| Plan | Expense Ratio (Approx.) |
|---|---|
| Tata Silver ETF (Direct) | 0.45% |
| Tata Silver ETF FoF – Direct Growth | 0.50% |
| Tata Silver ETF FoF – Regular Growth | 0.70% |
Tata’s fund maintains a low-cost structure, making it suitable for long-term holding.
🧠 Is It Good to Invest in Tata Silver ETF?
Yes, Tata Silver ETF is a good investment for investors seeking:
- Diversification beyond gold and equity
- Inflation protection
- Exposure to rising industrial demand for silver
👤 Best Suited For:
- Moderate-risk investors
- Long-term wealth builders
- SIP investors aiming for 3–5 year horizon
However, avoid short-term speculation — silver, like gold, performs best when held over longer timeframes.
💬 Expert Opinions
- Analysts expect silver demand to rise 30% by 2030 due to renewable energy applications.
- Tata Mutual Fund’s track record in commodity ETFs (like gold) has been strong, building investor confidence.
- Morningstar & Value Research give the fund a consistent performance rating due to its low tracking error and transparent holdings.
📈 Tata Silver ETF vs Gold ETF
| Feature | Tata Silver ETF | Gold ETF |
|---|---|---|
| Underlying Asset | Silver (99.9%) | Gold (99.5%) |
| Industrial Demand | High (Electronics, EVs) | Moderate |
| Inflation Hedge | Strong | Strong |
| Volatility | Higher | Lower |
| Price per Gram | ₹80 (approx.) | ₹6,200 (approx.) |
Silver is more volatile but also offers higher upside potential due to rising industrial consumption.
🧾 Tata Silver ETF Taxation
Tata Silver ETF and FoF are treated as non-equity mutual funds for taxation purposes.
💡 Tax Rules:
- Short-Term (≤3 years): Taxed as per individual income tax slab.
- Long-Term (>3 years): 20% tax with indexation benefit.
This makes it tax-efficient for long-term investors holding beyond 3 years.
🪙 Tata Silver ETF SIP Example
If you invest ₹1,000 monthly via SIP in Tata Silver ETF FoF (Direct Growth) for 5 years:
| Duration | Monthly SIP | Expected CAGR | Value (Approx.) |
|---|---|---|---|
| 5 Years | ₹1,000 | 11% | ₹77,200 |
(Assuming silver’s long-term CAGR at ~11%.)
🧮 How Does Tata Silver ETF Work?
- Tata Mutual Fund collects investor money.
- The fund buys physical silver stored in secure vaults.
- The NAV reflects the real-time silver price.
- Investors gain or lose based on silver price movement.
📦 Where Does Tata Silver ETF Store Silver?
The fund’s underlying physical silver is stored in approved vaults under third-party custodians as per SEBI norms, ensuring full transparency and safety.
🧾 Key Takeaways
| Feature | Details |
|---|---|
| Asset Type | 99.9% Physical Silver |
| Launched On | March 2022 |
| NAV (2025) | ₹78 (approx.) |
| Expense Ratio | 0.45% |
| Best For | Long-term inflation hedge |
| Minimum Investment | 1 unit (ETF) / ₹500 (FoF) |
| Return (Since Launch) | ~28% |
📋 FAQs (Questionnaire Format)
Q1. What is Tata Silver ETF?
It’s an ETF by Tata Mutual Fund that invests in physical silver to mirror domestic silver prices.
Q2. When was Tata Silver ETF launched?
It was launched in March 2022.
Q3. Is Tata Silver ETF good to invest in?
Yes, it’s ideal for diversification and inflation protection over 3–5 years.
Q4. What is the NAV of Tata Silver ETF?
The NAV fluctuates daily based on silver price; as of Oct 2025, it’s around ₹78.
Q5. What is Tata Silver ETF FoF Direct Growth?
A mutual fund version of the ETF that doesn’t require a demat account and reinvests gains for compounding.
Q6. How much should I invest?
Start small — even ₹500 via SIP in the FoF route is sufficient.
Q7. Where can I buy Tata Silver ETF?
Through NSE, BSE, or mutual fund platforms like Groww, Zerodha Coin, or Tata Mutual Fund’s website.
💬 Final Verdict
The Tata Silver ETF provides investors a simple, transparent, and affordable way to invest in silver, one of the most promising metals of the future.
With increasing industrial demand, stable management by Tata Mutual Fund, and low expense ratios, this ETF is an excellent addition to a long-term diversified portfolio.
It’s not meant for quick traders — but for investors who believe in slow and steady compounding through precious metals, Tata Silver ETF fits beautifully.
⚠️ Disclaimer
This article is for educational and informational purposes only. It should not be construed as financial advice or a recommendation to invest. Market conditions, silver prices, and fund performance may change over time. Investors are advised to consult a SEBI-registered financial advisor or visit the Tata Mutual Fund official website before making any investment decisions.
