Updated Oct 28, 2024 22:21 IST
Photo : ET Now Digital
Silver mutual funds sparkle in 2024 with nearly 30% returns! Here’s a look at some schemes, their returns
Article Highlights
- Silver mutual funds achieve over 28% average return in 2024
- HDFC Silver ETF leads, delivering 31.54% returns so far
- Diversifying with silver can enhance portfolio stability
Exchange-traded funds (ETFs) are pooled investment vehicles that channel investors’ money into various assets such as commodities, stocks, and bonds. Silver ETFs specifically focus on investing primarily in physical silver, silver futures contracts, or stocks of silver mining companies.
Silver mutual funds are generating significant returns in 2024, with an average performance of 28.51% across the category, according to data from ACE MF cited in the report by ET.
Top Performers and Market Leaders
HDFC Silver ETF – Among the most successful in the silver fund category, HDFC Silver ETF has achieved a 31.54% return in 2024, with an Asset Under Management (AUM) of Rs 320 crore as of September 30, 2024.
Aditya Birla Sun Life Silver ETF & ICICI Prudential Silver ETF – Close behind, these funds have also excelled with returns of 29.08% and 29.05%, respectively, in 2024.
Nippon India Silver ETF – As the largest silver ETF based on AUM, this fund managed assets worth Rs 4,476 crore in September and offered a 28.79% return, providing investors a blend of stability and growth potential.
Five Silver ETF Funds Achieve 27% Returns
As per the report by ET, Notable for consistent returns, five silver ETF funds – including HDFC Silver ETF FoF and ICICI Prudential Silver ETF FOF, Nippon India Silver ETF FOF, UTI Silver ETF FoF, Aditya Birla SL Silver ETF FOF, and Kotak Silver ETF FoF – yielded returns around 27% in 2024.
Portfolio Diversification
Since 2022, several exchange-traded funds (ETFs) based on silver commodities have entered the mutual fund industry as new players.
Investment advisors recommend silver and gold funds as valuable diversification tools within a balanced portfolio. While equities can be volatile, precious metals like silver offer a defensive element, and advisors often suggest earmarking around 10% of a portfolio to metals to balance risk and returns, as per the report by ET.
(Disclaimer: All mutual fund investments are subject to market risks; ET NOW advises all its readers, viewers, audience to go through all scheme related documents carefully and consult duly registered financial advisors before taking any money and investment related decision.)
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