Best Silver Mutual Funds in India 2026: Top 10 & Guide
What Silver mutual funds are, who should invest, key risks, and the top 10 funds with returns and risk data.
Silver mutual funds invest in silver ETFs or other silver-related assets, giving exposure to silver prices without buying or storing the metal. They can diversify an equity and debt portfolio but carry price and currency risk. This guide covers who should invest, benefits, risks, and the top 10 silver funds from our data.
Key takeaways
- Silver mutual funds mainly invest in units of silver ETFs, which track the price of physical silver.
- They remove the need to buy, store and secure physical silver, and offer liquidity and easy access.
- Benefits include convenience, lower costs, diversification and transparency.
- Risks include price volatility, currency fluctuations, market risk and tracking error.
- The top 10 funds below are matched by name and ranked by an internal score.
What are silver mutual funds?
Silver mutual funds invest in units of silver exchange-traded funds (ETFs) or other silver-related assets. The ETFs track the price of physical silver directly and trade like stocks on exchanges. By investing in a silver fund, you avoid physically buying and storing the metal, and you gain higher liquidity and easier access.
Who should invest in silver mutual funds?
- Conservative investors, since silver is seen as relatively stable, though the funds still carry risk.
- Beginners, because entry points are accessible.
- Long-term investors, as silver prices have risen steadily over the years and weathered economic uncertainty.
- Diversifiers, whose portfolios are mainly equity and debt.
What should you consider before investing?
- Your goals: inflation hedge, long-term wealth or diversification.
- Fund objectives and risk tolerance: check that they match your goals and horizon.
- Fund house reputation: pick reputed fund houses with proven track records in commodity investments.
- Costs: expense ratio, demat charges, taxes and brokerage.
- Transparency and key metrics: regular disclosure of holdings, plus returns, volatility, liquidity and AUM.
Advantages of silver mutual funds
- Convenience: no worries about purchase, storage or purity, and you can start with a small amount.
- Cost-effectiveness: lower expense ratios and related costs.
- Diversification to lower portfolio risk.
- Transparency: silver ETF prices are directly connected to domestic silver rates, so you can track value in real time.
Risks of silver mutual funds
- Price volatility from geopolitics, global economic factors, market sentiment and inflation.
- Currency risk: exchange-rate moves can affect the value of silver ETFs and your fund units.
- Market risk from adverse economic events.
- Tracking error: the funds invest mainly in passively managed ETFs, and inefficiency or a high expense ratio can open a gap between the ETF and the silver price.
How are silver mutual funds taxed?
Silver ETFs in India are taxed in the same way as gold ETFs, and the rules have changed over time, so check the current position or speak to a tax advisor.
Top 10 Silver mutual funds ranked by an internal score
These are the top 10 Silver funds from our data, ranked by Invo Wealth's internal fund-quality score. The score itself is not shown, only the return and risk numbers behind it. These funds are matched by theme from their names rather than from an official SEBI sub-category. A "--" means the fund has not completed that period or the data is unavailable.
Returns across 6 months to 5 years
Performance data as of 5 September 2026.
| Fund | 6M CAGR | 1Y CAGR | 3Y CAGR | 5Y CAGR |
|---|---|---|---|---|
| HDFC Silver ETF - Growth Option | -19.87% | 87.52% | 45.89% | -- |
| UTI Silver ETF Fund of Fund | -20.02% | 84.25% | 45.30% | -- |
| Kotak Silver ETF Fund of Fund | -18.71% | 86.48% | 45.17% | -- |
| Edelweiss Gold and Silver ETF FOF | -13.98% | 66.37% | 41.16% | -- |
| Axis Silver Fund of Fund | -19.33% | 84.40% | 45.19% | -- |
| Mirae Asset Gold Silver Passive FoF | -13.43% | 63.42% | -- | -- |
| HDFC Silver ETF Fund of Fund | -19.70% | 84.62% | 45.14% | -- |
| Nippon India Silver ETF FOF | -19.70% | 84.71% | 44.99% | -- |
| ICICI Prudential Silver ETF FOF | -19.74% | 84.02% | 45.05% | -- |
| Aditya Birla Sun Life Silver ETF FOF | -19.72% | 83.58% | 44.94% | -- |
Risk and consistency metrics
| Fund | ISIN | Volatility | Max drawdown (3Y) | Sortino ratio |
|---|---|---|---|---|
| HDFC Silver ETF - Growth Option | INF179KC1DI2 | 44.64% | -44.41% | 1.21 |
| UTI Silver ETF Fund of Fund | INF789F1AYM2 | 47.40% | -45.50% | 1.10 |
| Kotak Silver ETF Fund of Fund | INF174KA1MR1 | 48.08% | -45.64% | 1.08 |
| Edelweiss Gold and Silver ETF FOF | INF754K01OT3 | 34.18% | -34.27% | 1.39 |
| Axis Silver Fund of Fund | INF846K018J8 | 46.32% | -46.15% | 1.12 |
| Mirae Asset Gold Silver Passive FoF | INF769K01PP6 | 49.72% | -32.87% | 1.51 |
| HDFC Silver ETF Fund of Fund | INF179KC1DV5 | 49.79% | -46.04% | 1.04 |
| Nippon India Silver ETF FOF | INF204KC1345 | 44.80% | -43.56% | 1.16 |
| ICICI Prudential Silver ETF FOF | INF109KC1Y64 | 46.16% | -45.57% | 1.12 |
| Aditya Birla Sun Life Silver ETF FOF | INF209KB13F9 | 47.88% | -45.33% | 1.08 |
This list is matched by name, so check whether each fund holds silver directly through ETFs. Read volatility and drawdown carefully because silver prices can swing sharply.
How to invest in Silver mutual funds
You can invest in these funds using the Invo Wealth app. Sign up, get complete portfolio insights and start investing in mutual funds that actually suit you.
Conclusion
Silver funds offer a convenient way to add precious-metal exposure without handling silver. Expect price swings, and check costs and tracking error.
Frequently asked questions
What are silver mutual funds?
They mainly invest in units of silver ETFs, which track the price of physical silver and trade on exchanges, so you avoid buying and storing the metal yourself.
Who should consider silver mutual funds?
Conservative investors, beginners, long-term investors and anyone who wants to diversify a portfolio that is mainly equity and debt.
What are the risks of silver mutual funds?
Price volatility from geopolitical and global economic factors, currency fluctuations, market risk, and tracking error between the ETF and the silver price.
How are silver mutual funds taxed?
Silver ETFs in India are taxed in the same way as gold ETFs, and the rules have changed over time, so check the current rules or speak to a tax advisor.
How can I invest in silver mutual funds?
You can invest through a SIP or a lump sum. To invest in these funds, you can use the Invo Wealth app: sign up, get portfolio insights and start investing.
Mutual fund investments are subject to market risks; read all scheme-related documents carefully. This article is for education only and is not investment advice. Past performance does not guarantee future returns. Invo Wealth is an AMFI-registered mutual fund distributor (ARN-368528).