Earlier this year in January, silver ETF inflows rose 139% month-on-month and category assets jumped 61% to reach Rs 1.16 trillion (tn). MCX silver futures touched Rs 319,949 per kg.
Currently, Nippon India Silver ETF alone manages around Rs 295 billion (bn).
With multiple tailwinds working in the metal’s favour, you would expect is fund managers to be loading up on it.
So, we ran a query to see which mutual funds have the most silver investments.
After screening 528 schemes across diversified and hybrid categories on their month-end July 2026 portfolios, only 29 held any silver whatsoever.
The largest single allocation in the entire set is 7.2%. For comparison, the largest gold allocation in the same universe is 26.02%.
Silver, it turns out, is treated very differently from gold inside Indian mutual funds. Understanding why can be useful.
Why Silver is Not Just Cheaper Gold
Gold is almost entirely a monetary and jewellery asset. Silver is roughly half an industrial metal.
Global industrial silver demand is running near 650 million (m) ounces a year, driven by solar panels, electric vehicle components, electronics, and electrical equipment.
That gives silver a second engine gold does not have, and it also gives it a second way to fall. When industrial activity slows, silver slows with it, in a way gold does not.
This is why silver is materially more volatile than gold, and why a fund manager who is happy holding 20% gold will rarely hold 20% silver.
It’s also why the price rise carries its own drag: for 2026, silver jewellery demand is expected to fall about 9% and silverware demand about 17%, with India leading the decline because the metal has simply become too expensive.
Here are the mutual funds that hold most investments in Silver.
Route #1: Silver ETFs
A silver ETF holds physical silver of 99.9% purity in a vault, with SEBI requiring at least 95% of assets in the metal itself. India now has around nine of them and roughly 29 silver-focused funds in total once fund of funds are included.
As with gold, the metal is identical across schemes, so the differences come down to expense ratio, tracking error and liquidity.
Nippon India Silver ETF, trading as SILVERBEES, is the largest and most liquid. At the smaller end, Axis Silver ETF held Rs 18.6 bn as of 30 June 2026 with an expense ratio of 0.42% and tracking error around 0.95%, while UTI Silver ETF ran Rs 9.3 bn at a more competitive 0.34%.
Silver is bulkier and less liquid than gold in physical form, tracking error tends to be wider in silver ETFs than in gold ETFs. So do check that number.
A demat and trading account is required for holding Silver ETFs, as with any exchange-traded fund.
Route #2: Silver Fund of Funds
A silver fund of fund (FoF) buys units of a silver ETF, letting you run a SIP without a demat account and buy at NAV rather than at whatever the exchange order book offers.
The ICICI Prudential Silver ETF FoF is the largest in the segment. The cost, as with gold, is a second layer of fees sitting on top of the underlying ETF’s expense ratio.
But silver funds carry one risk gold versions have not faced. During a period of physical silver supply tightness in India in 2025, some fund houses temporarily halted fresh investments into their silver ETF FoF. The metal was hard to source at a fair price, so funds stopped accepting new money.
A gold investor has never had a fund shut down for want of gold. Silver’s market is smaller, so its physical supply chain tighter, and industrial buyers compete directly with investors for the metal.
Route #3: Multi-Asset Funds
A multi-asset allocation fund must hold at least 10% in each of at least three asset classes. Gold is the usual third asset. Silver is optional and most funds decline the option.
Of the 41 multi-asset, lifecycle, and asset-allocator schemes, 29 held some silver and 12 held none.
The median silver weight was 2.09%. In a similar article we did on gold, the median was 10.77%.
Here are the five holding the most.
| Scheme | Silver held directly | Silver via fund units | Total silver |
|---|---|---|---|
| Kotak Multi Asset Allocation Fund | Nil | 7.20% | 7.20% |
| PGIM India Multi Asset Allocation Fund | Nil | 7.03% | 7.03% |
| WOC Multi Asset Allocation Fund | 6.65% | Nil | 6.65% |
| Edelweiss Multi Asset Allocation Fund | 6.52% | Nil | 6.52% |
| Bandhan Multi Asset Allocation Fund | Nil | 6.46% | 6.46% |
Data Source: Ace MF, as of July 2026
The Funds That Love Gold Mostly do Not Own Silver
If you put the two gold and silver screens side by side, something genuinely surprising appears.
| Scheme | Gold weight | Silver weight | The gap |
|---|---|---|---|
| 360 ONE Multi Asset Allocation Fund | 26.02% | 3.02% | Gold heavy |
| Sundaram Multi Asset Allocation Fund | 19.50% | Nil | Gold only |
| Quantum Multi Asset Allocation Fund | 14.33% | Nil | Gold only |
| Baroda BNP Paribas Multi Asset Fund | 13.91% | Nil | Gold only |
| Kotak Multi Asset Allocation Fund | 4.57% | 7.20% | Silver heavy |
| SBI Multi Asset Allocation Fund | 6.42% | 3.65% | Balanced |
Data Source: Ace MF, as of July 2026
Kotak Multi Asset Allocation Fund holds the most silver of any scheme in India at 7.2%. On gold it ranks 35th of 38, with just 4.57%. It’s, in effect, the only fund in India that prefers silver to gold.
Meanwhile Sundaram, second in the country on gold at 19.5%, holds no silver at all. Quantum, third on gold at 14.33%, holds none. Baroda BNP Paribas, fifth on gold at 13.91%, holds none. And 360 ONE, which tops the gold table at 26.02%, holds just 3.02% silver.
Conclusion
If you want silver and you have a demat account, a silver ETF is the direct route, and tracking error deserves more of your attention here than it does with gold.
If you want a SIP without a demat account, a silver fund of fund does the job at one extra fee layer.
And if you own a multi-asset allocation fund, your silver exposure is almost certainly small and quite possibly zero. Twelve of the forty-one schemes screened held none at all, and the largest holding in the country is 7.2%.
The closing caution is the same one that applied to gold, only more so. Silver has run hard, and every allocation to it looks clever at the top of a run.
But silver falls harder than gold when industrial demand turns and its consumer demand base is already shrinking under the weight of its own price.
Evaluate the scheme’s mandate, costs, portfolio composition, and your own asset allocation and risk tolerance before drawing any investment conclusions.
Happy investing.
The website managers, its employee(s), and contributors/writers/authors of articles have or may have an outstanding buy or sell position or holding in the securities, options on securities or other related investments of issuers and/or companies discussed therein. The content of the articles and the interpretation of data are solely the personal views of the contributors/ writers/authors. Investors must make their own investment decisions based on their specific objectives, resources and only after consulting such independent advisors as may be necessary
Disclaimer: This article is for information purposes only. It is not a stock recommendation and should not be treated as such. Learn more about our recommendation services here…
Every financial journey has a turning point. What’s yours?
Financial Express is launching a new series highlighting real experiences with money, investments, and the taxman. Did a sudden tax rule catch you off guard? Did a piece of financial advice change your life? Your story could provide invaluable, practical lessons for thousands of fellow taxpayers. Share your experience with us. We respect your privacy: no stories will be featured without a direct conversation and your full consent. Thank you.