Best Silver ETF India | Should you buy ?
Due to the rising need for green energy, the use of cellphones alongside increasing adoption of electric vehicles, one commodity is going to be in great demand, and that’s silver. Unlike gold, the price of silver is driven by the demand for the precious metal. So with demand for silver rising, several asset management companies are launching Silver exchange traded funds. If you’re feeling bullish on this often-snubbed metal, read along this article delight to know about Best Silver ETF India.
What is Silver ETF? | Understanding Silver ETFs
A silver exchange-traded fund (ETF) invests primarily in hard silver assets, which are held in trust by the fund manager or custodian. Established typically as grantor trusts, silver ETFs allow each share represented by the ETF the specific right to a particular quantity of silver, measured in ounces.​​​ The net asset value of silver ETFs is proportional to the price of silver. Silver ETFs mirror the market value of silver in real-time. The net asset value of these ETFs will shift in response to changes in silver’s price. Silver is bought and stored safely by the silver ETF’s fund management.
Why consider Silver ETF?
These are the distinguishing features of silver ETFs
Purity: Investors in silver ETFs should not be concerned about the authenticity of the metal. Fund managers only invest in silver that is at least 99.99% pure and keep it in locked vaults.
Defend against rising prices in the economy : Gold and silver are two commodities that can act as a hedge against inflation. Thus, silver might be a safe investment choice in times of turmoil.
No storage fees: Those who invest in silver ETFs might save money on silver storage fees. The fund manager uses the investment capital to buy silver. A fund house is also responsible for keeping the assets safe and secure.
Reduced portfolio risk: Investing in precious metals like silver, gold, etc., which have a minimal degree of risk, is one way for individuals to spread their financial bets. As a result, their investment portfolio as a whole will be subject to less risk.
Taxes on Silver ETFs
Under the purview of Indian income tax laws, gold, silver and debt ETFs are treated similarly. As such, silver ETfs attract the following tax implications:
Silver ETFs held for up to 36 months or three years attract tax under the short term capital gains bracket. Therefore, they are added to an individuals annual income and are taxed according to their income slab. This applies even if the investor sells their units at a loss.
For ETFs held for more than 36 months or 3 years, long term capital gain laws apply. Thus income generated from sale of silver ETF units held for more than 36 months shall be taxed at a rate of 20%. Investors can avail of indexation benefits to reduce the tax burden attracted by LTCG on silver ETFs.
For more detail, visit https://www.wintwealth.com/blog/everything-you-need-to-know-about-taxes-on-silver-in-india/
List of Best Silver ETF India
ICICI Prudential Silver ETF
Nippon India Silver ETF
Aditya Birla Sun Life Silver ETF
DSP Silver ETF
HDFC Silver ETF
How do you sign up for a silver ETF?
The sign up process for a silver ETF in India can be done through mutual fund managers, personal finance advisors and mutual fund platforms. The customer has to submit their KYC on the platform, along with Aadhar and PAN details.
Apps like Groww, Zerodha, Upstox and PayTM money can be used by tech savvy investors. For a more traditional approach, you can approach mutual fund advisor or chartered accountant.
Final Takeaway
Silver will always sit in gold’s media shadow, but silver ETFs can help you enjoy runs of outperformance.Investors seeking portfolio diversification will find silver ETFs to be an excellent choice. They are also a good choice for traders and investors who wish to gain exposure to silver without buying physical coins. Not only are they more convenient than actual silver, but they also save on taxes. Because of this, the above list of Best Silver ETF India are viable options for those who want to invest in silver only for the goal of earning a return and reducing taxes.
See also : The Concept of Stealth Wealth | How You Can Achieve That https://thebrightdelights.com/the-concept-of-stealth-wealth-how-you-can-achieve-that/