The Tata Silver ETF is an open-ended exchange-traded fund (ETF) launched by Tata Mutual Fund on January 12, 2024. Its primary objective is to mirror the performance of physical silver prices in the domestic market, subject to tracking errors.
Key Details:
- Fund Type: Exchange-Traded Fund (ETF)
- Investment Objective: To generate returns aligned with the performance of physical silver in domestic prices.
- Benchmark: Domestic Price of Silver
- Fund Managers: Tapan Patel (Lead Fund Manager) and Kapil Menon
- Expense Ratio: 0.45%
- Minimum Investment: ₹100 for lump sum investments
- Exit Load: None
- Risk Category: Very High
Performance:
As of January 17, 2025, the Net Asset Value (NAV) of the Tata Silver ETF stands at ₹9.00. Since its inception, the fund has delivered a Compound Annual Growth Rate (CAGR) of approximately 26.7%.
Portfolio Composition:
The fund primarily invests in physical silver, constituting about 97.39% of its assets. The remaining assets are held in cash and cash equivalents.
Tax Implications:
- Short-Term Capital Gains (STCG): If units are redeemed within three years, gains are added to the investor’s income and taxed according to the applicable income tax slab rates.
- Long-Term Capital Gains (LTCG): For units redeemed after three years, gains are taxed at 20% post-indexation benefits.
- Dividend Income: Subject to tax as per the investor’s income tax slab. Additionally, a Tax Deducted at Source (TDS) of 10% is applicable on dividend income exceeding ₹5,000 in a financial year.
Investment Considerations:
Investing in the Tata Silver ETF offers exposure to the performance of silver prices, which can be volatile. The fund is suitable for investors seeking to diversify their portfolios with a commodity-based investment. Given its high-risk category, it’s advisable to assess your risk tolerance and investment horizon before investing.
Tata Silver ETF Portfolio
The Tata Silver ETF primarily invests in physical silver, constituting approximately 97.3% of its assets, with the remaining 2.7% allocated to cash and cash equivalents.
Portfolio Breakdown:
| Asset Class | Allocation (%) |
| Physical Silver | 97.3 |
| Cash & Cash Equivalents | 2.7 |
This allocation strategy aligns with the fund’s objective to mirror the performance of physical silver prices in the domestic market.
Tata Silver ETF Returns
The Tata Silver ETF, launched on January 12, 2024, aims to replicate the performance of physical silver prices in the domestic market. Here’s a detailed overview of its returns:
Performance Overview:
| Period | ₹10,000 Invested On | Latest Value | Absolute Returns | Annualized Returns | Category Average | Rank Within Category |
| 1 Week | 06-Dec-24 | ₹9,903.20 | -0.97% | – | 0.21% | 543/572 |
| 1 Month | 13-Nov-24 | ₹10,080.60 | 0.81% | – | 4.77% | 433/560 |
| 3 Months | 13-Sep-24 | ₹10,450.20 | 4.50% | – | -0.25% | 44/521 |
| 6 Months | 13-Jun-24 | ₹10,209.80 | 2.10% | – | 6.04% | 419/487 |
| Since Inception | 17-Jan-24 | ₹12,569.70 | 25.70% | 28.68% | 12.38% | – |
Additional Information:
- Expense Ratio: 0.45%
- Fund Size: ₹123 Crores
- Minimum Investment: ₹100 for lump sum investments
- Exit Load: None
- Risk Category: Very High
Tax Implications:
- Short-Term Capital Gains (STCG): If units are redeemed within three years, gains are added to the investor’s income and taxed according to the applicable income tax slab rates.
- Long-Term Capital Gains (LTCG): For units redeemed after three years, gains are taxed at 20% post-indexation benefits.
- Dividend Income: Subject to tax as per the investor’s income tax slab. Additionally, a Tax Deducted at Source (TDS) of 10% is applicable on dividend income exceeding ₹5,000 in a financial year.
Investment Considerations:
Investing in the Tata Silver ETF offers exposure to the performance of silver prices, which can be volatile. The fund is suitable for investors seeking to diversify their portfolios with a commodity-based investment. Given its high-risk category, it’s advisable to assess your risk tolerance and investment horizon before investing.
Tata Silver ETF NAV
As of January 20, 2025, the Net Asset Value (NAV) of the Tata Silver ETF is ₹8.94.
The fund has delivered a return of 25.78% since its launch on January 12, 2024.
The Tata Silver ETF primarily invests in physical silver, constituting approximately 97.3% of its assets, with the remaining 2.7% allocated to cash and cash equivalents.
The fund’s expense ratio is 0.47%, and it currently manages assets worth ₹131.79 crore.
The Tata Silver ETF is categorized under commodities with a focus on silver and carries a ‘Very High’ risk rating.
Tata Silver ETF Share Price
Tata Silver Exchange Traded Fund (ETF) closed at ₹8.92 per unit.
Recent Performance:
| Date | Open (₹) | High (₹) | Low (₹) | Close (₹) | Volume |
| Jan 17, 2025 | 9.00 | 9.00 | 8.80 | 8.92 | 767,868 |
| Jan 16, 2025 | 8.89 | 9.11 | 8.88 | 9.00 | 2,037,871 |
| Jan 15, 2025 | 8.80 | 8.83 | 8.668 | 8.81 | 1,046,000 |
52-Week Range:
- Low: ₹6.74
- High: ₹10.32
Fundamentals:
- Assets Under Management (AUM): ₹131.79 crore
The Tata Silver ETF aims to replicate the performance of physical silver in domestic markets, subject to tracking errors. It’s suitable for investors looking to diversify their portfolios with commodity-based assets. Given the inherent volatility of silver prices, potential investors should assess their risk tolerance and investment horizon before investing.
Tata Silver ETF Share Price Target 2030
Predicting the exact share price target for the Tata Silver ETF or any similar investment for 2030 is challenging due to the volatile and speculative nature of silver prices. However, long-term price movements in silver depend on several factors, including:
Factors Affecting Silver Prices:
- Global Economic Conditions: Silver often acts as a hedge against inflation and economic uncertainty.
- Industrial Demand: Silver has significant industrial applications, especially in electronics, solar energy, and medical equipment.
- Supply Constraints: Mining output and geopolitical factors can impact supply.
- Currency Movements: Silver is priced in U.S. dollars, so currency fluctuations influence prices.
- Investment Demand: Increased interest in commodities as an asset class can drive demand for silver ETFs.
Historical Trends & Projections:
- Historical Growth: Silver prices have shown an average annualized growth rate of 3–5% over the long term, with periodic spikes due to economic events.
- Analysts’ Projections: Many market analysts expect silver prices to grow, potentially reaching levels between $30–$50 per ounce by 2030, depending on global demand and supply.
Impact on Tata Silver ETF:
- Tracking Silver Prices: The ETF directly tracks domestic silver prices, so its performance will align with global silver price trends, adjusted for INR/USD exchange rates and fund expenses.
- Possible Growth: If silver prices grow annually by 5–7% and the INR remains stable, the ETF’s NAV and share price could see similar growth rates.
Hypothetical Target for 2030:
Assuming a moderate growth scenario of 5% annually:
- Current NAV: ₹8.94 (January 2025)
- Projected NAV (2030): Approximately ₹12–₹14 (based on a 5–7% annual growth rate).
Considerations for Investors:
- Regularly review market conditions and consult a financial advisor.
- Factor in expense ratios and tracking errors that may slightly impact returns.
- Keep in mind the high-risk nature of commodity-based investments.
Tata Silver ETF Review
The Tata Silver ETF, launched on January 12, 2024, is a relatively new investment vehicle focused on replicating the performance of domestic silver prices. Here’s a comprehensive review of its features, performance, and suitability:
1. Fund Overview
- Objective: To provide returns that closely correspond to the performance of physical silver prices in India.
- Fund Type: Exchange-Traded Fund (ETF)
- Benchmark: Domestic silver prices
- Expense Ratio: 0.47% (as of Jan 2025)
- Risk Category: Very High
- Fund Size: ₹131.79 crores (as of Jan 2025)
2. Performance
The fund tracks domestic silver prices and is subject to the inherent volatility of the commodity. Here’s a look at its returns:
| Period | Returns (%) |
| 1 Month | ~0.80% |
| 3 Months | ~4.50% |
| 6 Months | ~2.10% |
| Since Launch | ~25.78% |
- Volatility: Silver prices are highly volatile due to global economic trends, making this ETF suitable for risk-tolerant investors.
- Tracking Error: The ETF shows minor tracking errors, which is common among commodity-based funds.
3. Portfolio Composition
- Primary Holdings: ~97.3% in physical silver
- Cash & Cash Equivalents: ~2.7% for liquidity
- No Exposure to Other Commodities: Focuses solely on silver, providing pure-play exposure.
4. Pros
- Diversification: Provides investors with exposure to silver, an asset class that acts as a hedge against inflation and economic uncertainty.
- Ease of Investment: Allows retail investors to invest in silver without worrying about storage or purity issues associated with physical silver.
- Liquidity: Traded on stock exchanges, making it easy to buy or sell units during market hours.
- Low Expense Ratio: Competitive cost structure compared to actively managed funds.
5. Cons
- Volatility: Prices are influenced by global supply-demand dynamics, currency fluctuations, and market sentiment, leading to potential short-term instability.
- No Active Management: As a passive fund, it doesn’t actively seek opportunities beyond tracking silver prices.
- Taxation: Gains are taxed as debt instruments (20% post-indexation for long-term, as per applicable slab for short-term).
- Limited Historical Data: Being a new fund, its long-term performance and resilience during economic downturns remain untested.
Who Should Invest?
Suitable for:
- Investors looking to diversify their portfolios with commodities.
- Those with a high-risk tolerance and an investment horizon of at least 5–7 years.
- Individuals seeking to hedge against inflation and currency depreciation.
Not Suitable for:
- Conservative investors seeking stable returns.
- Those unwilling to tolerate high price volatility.
Verdict
The Tata Silver ETF is a good option for investors who want exposure to silver without the hassle of owning physical silver. However, it is best suited for those with a long-term perspective and the ability to handle market volatility. As with any investment, consider consulting a financial advisor before investing to align with your financial goals and risk appetite.
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