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Silver ETF Soars: 2.6x Return in 3 Years!
11 Dec
Summary
- Kotak Silver ETF delivered a remarkable 2.6x return over three years.
- A ₹10,000 investment grew to ₹26,132 with over 37% CAGR.
- Assets under management reached ₹2,630 crore by November 2025.
The Kotak Silver ETF has completed three years of operation, marking a notable achievement with a 2.6x return since its inception. This impressive performance coincides with a significant multi-year rally in silver prices. An initial investment of ₹10,000 in December 2022 would have grown to ₹26,132 by November 30, 2025, translating to a compound annual growth rate of over 37%.
By the end of November 2025, the scheme's Assets Under Management (AUM) surpassed ₹2,630 crore, establishing it as one of the leading silver-focused passive funds available in the country. The ETF's primary objective is to mirror the domestic price of silver, closely following the LBMA silver spot price, while accounting for potential tracking errors. It also has the flexibility to invest in various silver-related financial instruments.
Managed by Jeetu Valechha Sonar and Abhishek Bisen, the fund carries an expense ratio of 0.45%. Its success is largely propelled by a robust upswing in silver prices, underpinned by strong industrial demand, substantial inflows into precious metals, and favorable global macroeconomic conditions. However, analysts caution that silver's volatility is influenced by factors such as global interest rates, geopolitical events, and industrial demand cycles, meaning past performance is not a guarantee of future results.
