Investment: Which is more beneficial to buy, a Silver ETF or a mutual fund? Which one should you invest in?

Given the returns silver has yielded in the past, everyone wants to invest in it. In this digital age, you don't need to buy physical silver or gold to invest in these precious metals. You can also invest in silver through Silver ETFs and mutual funds.

We are often confused between ETFs and mutual funds. It's difficult to understand which one will yield better returns. Let's first understand the difference between the two.

When it comes to returns, it depends on the specific ETF or mutual fund you choose. It doesn't matter whether you choose a mutual fund or an ETF for investment.

Point | Silver Mutual Fund | Silver ETF
Meaning | Under a mutual fund, the company invests in silver, silver ETFs, and related assets such as silver products and mining companies. | Under a Silver ETF, your money is invested in bullion or futures contracts. An ETF is an instrument that tracks the performance of silver.

Demat Account | You do not need a Demat account to invest in this. | You need a Demat account to invest in this, as you invest through a brokerage app.

Charges | In Silver Mutual Funds, you have to pay charges like entry load and exit load, similar to other mutual funds. | In Silver ETFs, you will have to pay brokerage charges.

Tax | The profits from this fall under capital gains tax. Therefore, STCG and LTCG taxes will apply. | The profits from this fall under capital gains tax. Therefore, STCG and LTCG taxes will apply.

When it comes to returns, it depends on the specific ETF or mutual fund you choose. It doesn't matter whether you choose a mutual fund or an ETF for investment.

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