Kotak Silver ETF Triples Investors’ Money in Just Three Years

Kotak Silver ETF has emerged as a star performer in the investment market, nearly tripling investors’ capital within three years of its launch. Introduced in December 2022, the fund’s assets under management (AUM) crossed ₹2,630 crore in November 2025, highlighting its rapid growth and strong market appeal.

Consistent High Returns

Managed by Jitu Walecha Sonar and Abhishek Bisen, Kotak Silver ETF has delivered an impressive annualized return. Investors who put in ₹10,000 at the fund’s inception would have seen their investment grow to ₹26,132 by November 30, 2025. The fund has generated a compound annual growth rate (CAGR) of over 37% since its launch.

Being an exchange-traded fund, its performance is closely linked to silver prices, specifically the LBMA silver spot price. Apart from direct silver exposure, the fund also invests in instruments associated with the silver market, which has benefited from strong global and domestic demand in recent years.

Impact of Rising Silver Prices

The ETF’s remarkable growth is largely attributed to a surge in silver prices over the past few years. Its expense ratio stands at a competitive 0.45%, making it an attractive option for investors seeking cost-effective exposure to precious metals. However, analysts caution that silver prices can be volatile, and future performance could fluctuate accordingly. Potential investors are advised to consult financial advisors before committing funds.

Other Silver ETFs Also Deliver Strong Returns

Kotak Silver ETF is not alone in its stellar performance. Several other silver ETFs have posted impressive three-year returns:

• Axis Silver ETF: 37.67% CAGR

• DSP Silver ETF: 37.56% CAGR

• Nippon India Silver ETF: 37.39% CAGR

• ICICI Prudential Silver ETF: 37.32% CAGR

• Aditya Birla Sun Life Silver ETF: 37.29% CAGR

Despite these high returns, experts warn against making investment decisions solely based on historical performance, emphasizing careful evaluation and diversification.

Investing in Precious Metals: A Smart Option

Investment advisors often recommend allocating a portion of one’s portfolio to bullion such as gold and silver. For those who have not yet ventured into bullion, ETFs provide a convenient entry point without the challenges of physical storage. Silver ETFs allow investors to benefit from price appreciation while trading seamlessly on stock exchanges.

By offering easy access, strong past performance, and cost-effective management, silver ETFs like Kotak Silver ETF are increasingly becoming a preferred option for investors looking to diversify and hedge their portfolios with precious metals.