5 days ago
Indian Mutual Funds Show Limited Exposure to Silver
Indian mutual funds usually invest much less in silver than in gold.
A review of portfolios from July 2026 found that only 29 of 41 relevant schemes owned any silver.
Kotak Multi Asset Allocation Fund had the highest share, at 7.20%.
Some funds owned silver through other fund units instead of holding it directly.
Investors can buy silver through ETFs or fund of funds.
ETFs require a demat and trading account, while fund of funds can support SIPs without one.
Silver is used in factories, solar panels, electronics, and electric vehicles, so its price can change when industry slows.
The article says investors should consider costs, risks, and their overall asset allocation before investing.
Only 29 of 41 screened multi-asset, lifecycle, and asset-allocator schemes held silver in July 2026.
Kotak Multi Asset Allocation Fund had the largest silver allocation, at 7.20%, entirely through fund units.
Silver allocations were generally far smaller than gold allocations, with a median of 2.09% versus 10.77% for gold.
Silver ETFs offer direct exposure, while silver fund of funds allow SIPs without a demat account but add another fee layer.
Silver’s industrial demand and tighter physical supply can increase volatility and investment risk compared with gold.
- Who
- Indian mutual funds, fund managers, and investors seeking silver exposure.
- What
- A review identified which mutual fund schemes held the most silver and compared silver exposure with gold exposure.
- Where
- India, including Indian mutual funds, exchanges, and silver investment funds.
- When
- The portfolio data was from month-end July 2026; other market figures in the article refer to early 2026 and 2025.
- Why
- The review was conducted to assess how Indian mutual funds are responding to silver’s recent price rise and investment demand.
Key facts
- Schemes screened
- 528 diversified and hybrid schemes were screened; 29 of 41 multi-asset, lifecycle, and asset-allocator schemes held silver.
- Largest silver allocation
- Kotak Multi Asset Allocation Fund held 7.20% in silver, the highest allocation identified.
- Silver allocation median
- The median silver allocation among the relevant schemes was 2.09%.
- Gold allocation median
- The comparable median gold allocation was 10.77%.
- Largest gold allocation
- 360 ONE Multi Asset Allocation Fund held 26.02% in gold and 3.02% in silver.
- Silver ETF requirement
- Silver ETFs must hold at least 95% of assets in silver, according to the article’s description of Securities and Exchange Board of India rules.
- Nippon India Silver ETF
- Nippon India Silver ETF managed around Rs 295 billion, according to the article.
Sources
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