The Nippon India Silver ETF is an open-ended exchange-traded fund (ETF) that aims to mirror the performance of physical silver prices in the domestic market. Managed by Nippon India Mutual Fund, the ETF invests primarily in physical silver and silver-related instruments.
Who is the CEO of Nippon India Silver ETF?
The CEO of Nippon India Asset Management Company (which manages the Nippon India Silver ETF) is Amit Singhania.
Amit Singhania has been involved in the asset management industry for many years and has played a key role in leading and overseeing the operations of Nippon India Mutual Fund. As the CEO, he is responsible for the strategic direction and growth of the mutual fund and its various products, including the Nippon India Silver ETF.
If you’re specifically looking for more detailed information about the management of the Silver ETF itself, that would typically fall under the broader leadership and team responsible for all the fund’s offerings, with involvement from fund managers like Vikram Dhawan.
Key Details:
- Inception Date: February 2, 2022.
- Fund Manager: Mr. Vikram Dhawan.
- Investment Objective: To generate returns closely corresponding to the performance of physical silver in domestic prices, before expenses, subject to tracking errors.
Minimum Investment:
- Through Stock Exchange: 1 unit and in multiples thereof.
- Directly with the Mutual Fund: In creation unit size, i.e., 30,000 units and in multiples thereof.
- Expense Ratio: The total expense ratio includes additional expenses as per SEBI regulations and Goods and Service Tax on management fees.
- Risk Profile: The product is suitable for investors seeking portfolio diversification through asset allocation and investment in physical silver. Investors should consult their financial advisers to determine if this product aligns with their investment goals.
Nippon India Silver ETF Share Price
Nippon India Silver ETF (Ticker: SILVERBEES) is trading at ₹90.28 per unit on the National Stock Exchange (NSE).
Key Price Metrics:
- 52-Week High: ₹100.00
- 52-Week Low: ₹66.10
Performance:
Net Asset Value (NAV): As of December 10, 2024, the NAV was ₹90.2443.
Returns:
- 1-Year CAGR: 13.05%.
- Since Inception: 12.56%.
Portfolio Composition:
The ETF primarily invests in physical silver and silver-related instruments. As of October 31, 2024, the portfolio was 97.7% invested in these assets.
Investment Considerations:
Investing in the Nippon India Silver ETF provides exposure to the performance of silver prices, offering potential benefits from silver’s price movements. However, investors should be aware of the inherent risks associated with commodity investments, including price volatility and market liquidity. It’s advisable to consult with a financial advisor to assess the suitability of this investment based on individual financial goals and risk tolerance.
Is Nippon India Silver ETF a Good Investment?
Whether the Nippon India Silver ETF is a good investment depends on several factors, including your financial goals, risk tolerance, and outlook on silver prices. Here are a few points to consider:
Pros of Investing in Nippon India Silver ETF:
- Exposure to Silver Prices: If you’re looking for a way to invest in silver without directly purchasing physical silver, this ETF offers an efficient way to gain exposure to silver’s price movements.
- Diversification: Silver can act as a hedge against inflation and market volatility, helping diversify your investment portfolio. In times of economic uncertainty, silver tends to perform well as an alternative to traditional equity and bond markets.
- Liquidity: As an ETF, it can be traded on the stock exchange, offering easy entry and exit compared to physical silver.
- No Storage Issues: Since the ETF holds physical silver on your behalf, you don’t have to worry about the logistics of storage, which is a common concern for those holding physical silver.
Cons of Investing in Nippon India Silver ETF:
- Volatility: Silver prices can be volatile. Unlike stocks or bonds, silver’s price can fluctuate rapidly, and this ETF’s performance will be closely tied to that volatility.
- Currency Risk: If you’re investing in silver but are not hedged against currency risk, fluctuations in the value of the rupee against global currencies can affect your returns.
- Tracking Error: The performance of the ETF may not perfectly mirror the price of silver due to factors like management fees and transaction costs.
- Commodity Risks: The value of silver is influenced by a variety of factors like industrial demand, geopolitical events, and macroeconomic trends, which can add an additional layer of risk.
Who Should Consider It?
- Investors with a Bullish View on Silver: If you believe silver prices will rise in the future, this ETF could potentially offer a good return.
- Diversification Seekers: If you’re looking for exposure to commodities and want to diversify away from traditional equities and bonds, this ETF could fit into your portfolio.
- Long-Term Investors: For those who can weather volatility and are looking for an asset to hold for the long term, silver could provide value as a store of wealth.
Who Should Be Cautious?
- Risk-Averse Investors: If you’re not comfortable with the ups and downs that come with commodity investments like silver, this may not be ideal for you.
- Short-Term Traders: Because of silver’s volatility, short-term traders may face higher risks compared to other more stable asset classes.
Positive Aspects:
(1) Exposure to Silver: The ETF is an easy way for investors to gain exposure to silver’s price movements without dealing with the complexities of buying, storing, or insuring physical silver. This makes it an attractive option for those who want to invest in silver in a liquid, cost-effective way.
(2) Liquidity & Convenience: As an exchange-traded fund, it can be bought and sold on the stock exchange, offering a level of convenience that is far superior to holding physical silver. It allows for quick entries and exits, just like trading stocks.
(3) Tracking Silver’s Price: The fund’s objective is to closely mirror the performance of silver prices in the domestic market, so if silver prices rise, the ETF’s value is likely to increase as well. This makes it attractive for investors who expect silver prices to appreciate.
(4) Expense Ratio: The expense ratio is relatively low compared to other actively managed funds, meaning that more of your investment is going into silver rather than management fees.
(5) Diversification: For investors looking to diversify their portfolios beyond traditional assets like stocks and bonds, the Nippon India Silver ETF provides a convenient and relatively simple way to add a commodity to the mix.
Final Verdict:
The Nippon India Silver ETF is generally considered a good option for investors seeking exposure to silver while avoiding the challenges of physical silver ownership. However, its suitability largely depends on your investment goals, risk tolerance, and time horizon. If you’re looking for diversification and can handle the ups and downs of commodity investing, it can be a useful addition to your portfolio. For conservative investors or those with a short-term focus, this ETF may be too volatile to meet your needs.
Nippon India Silver ETF Returns
Here’s a table summarizing the returns for the Nippon India Silver ETF:
| Period | Return (%) |
| 1 Year (CAGR) | 13.05% |
| Since Inception (Feb 2022) | 12.56% |
This table shows the performance based on the fund’s return over the past year and since its inception in February 2022. Keep in mind that these figures are subject to change based on the price movement of silver and other market conditions.
Nippon India Silver ETF Direct Growth
The Nippon India Silver ETF FoF Direct Growth is a Fund of Funds (FoF) scheme that invests in the Nippon India Silver ETF, providing investors with exposure to silver prices through a mutual fund structure.
Key Details:
- Fund Manager: Mr. Mange, who holds a B.Com and CA.
- Expense Ratio: 0.26%.
- Risk Profile: Very High.
Performance:
As of January 3, 2025, the fund’s Net Asset Value (NAV) was ₹13.85.
The fund has delivered the following returns:
- Since Inception: 11.82% average annual returns.
Investment Considerations:
- Minimum Investment: ₹100 for both lump sum and SIP.
- Exit Load: 1% if redeemed within 15 days.
Peer Comparison
As of now, the Nippon India Silver ETF is one of the few investment options in India that provides direct exposure to silver prices. Currently, there are no other silver ETFs listed in India for a direct peer comparison.
However, investors seeking exposure to precious metals might consider Gold ETFs as an alternative. Gold ETFs function similarly to silver ETFs but invest in gold. Here are some popular Gold ETFs in India:
| ETF Name | Expense Ratio (%) | 1-Year Return (%) | 3-Year Return (CAGR %) | 5-Year Return (CAGR %) |
| Nippon India ETF Gold BeES | 0.82 | 19.72 | 13.87 | 11.50 |
| SBI Gold ETF | 0.51 | 20.10 | 14.00 | 11.60 |
| HDFC Gold ETF | 0.40 | 19.85 | 13.95 | 11.55 |
Considerations:
- Asset Class: While both gold and silver are precious metals, they have different market dynamics. Gold is often viewed as a “safe-haven” asset, whereas silver has significant industrial applications, leading to different demand drivers.
- Volatility: Silver prices tend to be more volatile compared to gold. Investors should assess their risk tolerance before investing.
- Investment Objective: Determine whether your goal is wealth preservation, hedging against inflation, or capital appreciation, and choose the asset that aligns with your objectives.
Strengths Of Nippon India Silver ETF:
(1) Convenient Silver Exposure:
- Provides investors with a simple way to invest in silver without the hassle of buying, storing, or securing physical silver.
(2) Highly Liquid:
- As an ETF, it can be bought and sold easily on stock exchanges, unlike physical silver, which has liquidity and purity concerns.
(3) Diversification:
- Silver is both a precious metal and an industrial commodity, making it a good diversifier in an investment portfolio.
(4) Hedge Against Inflation:
- Silver, like other commodities, acts as a hedge against inflation, protecting purchasing power when fiat currency loses value.
(5) Lower Expense Ratio:
- The fund has a low expense ratio compared to actively managed mutual funds, reducing overall costs.
(6) Potential for Growth:
- Silver has both investment and industrial demand (used in electronics, solar panels, medical devices), which can drive long-term price appreciation.
Risks Of Nippon India Silver ETF:
(1) High Volatility:
- Silver prices are highly volatile, driven by global economic conditions, industrial demand, and investor sentiment.
(2) Tracking Error:
- While the ETF aims to track silver prices, there can be minor deviations due to fund expenses and management fees.
(3) Market & Economic Risks:
- Silver prices fluctuate based on industrial demand, geopolitical events, central bank policies, and economic conditions.
(4) No Interest or Dividends:
- Unlike stocks or bonds, silver does not generate dividends or interest, making it purely dependent on price appreciation for returns.
(5) Regulatory & Tax Implications:
- ETFs are subject to capital gains tax and may be affected by changes in government policies on commodities and taxation.
(6) Currency Fluctuations:
- Since silver prices are linked to international markets, fluctuations in the Indian Rupee vs. US Dollar can impact returns.
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