How to invest in Silver?:Should you choose mutual funds or ETFs? People made 155% return by investing on both Silver MFs ETFs

Silver and gold have outperformed the equity markets in 2025. People have made more money by investing in metals than stocks. In such a scenario, the Fomo hit-common man looking to take an exposure in commodities like gold and silver may adopt the SIP route or invest a lump sum amount in digital versions of these two commodities. Following are options to invest in silver: Following modes of investing in gold: Bullion experts advise retail investors to select either Exchange Traded Funds (ETFs) or Mutual Funds (MFs) for investing. Which one should you choose? Lets see what are the advantages and disadvantages of investing in both these schemes. Source: Goalstox While, according to Vishranth Suresh, CEO and Co-founder, AssetPlus, ETFs are for those who prefer investing through demat accounts and are in need of quicker tax benefits and lower charges. While, MFs are for those who want to invest via SIPs and prefer longer holding period. Gold ETFs suit investors who have demat accounts and want lower costs and quicker tax benefits. Gold Mutual Funds or FoFs are better for those who prefer easy investing and SIPs, even though they come with slightly higher costs and a longer holding period. -Vishranth Suresh, CEO and Co-founder, AssetPlus How ETFs are taxed? In the long term period of more than 1 year, gains booked in ETFs are taxed at 12.5%. While, in case of Gold and Silver MFs, the taxation rate is the same, but, the long term period is of 2 years and more. Gold ETFs are taxed at 12.5% long-term capital gains after one year, while Gold Mutual Funds need a two-year holding period to get the same tax rate. If sold earlier, gains are taxed as per the investor’s income slab. -AssetPlus Do ETFs come with hidden charges? But, a go through on brokerage firm, Zerodha’s Kite platform reveals that albeit, the ETFs don’t attract expense ratio, entry and exit loads, but, these attract other types of charges that are levied in case of trading of securities. These charges exclude STT but include GST, Sebi charge, Stamp Duty, DP charge. Charges Levied on Gold Silver MFs: How much silver prices increased in 2025? The prices of the white metal made record highs of ₹2.54 lakh per kg in 2025. Silver gave returns of more than 165% in the calendar year. Which scheme gave higher return MFs or ETFs? Whether, ETFs or MFs, the investors have generated similar returns in both of these schemes. Gold MFs gave returns of around 75% in the year under consideration. Whether Gold ETFs or MFs, both gave similar returns in 2025: By investing in the units of the yellow metal traded on exchanges, citizens made same amount of money as compared to purchasing units of Gold MFs.
People Made 120% Returns By Investing In Silver ETFs: Similar returns by investing in Silver ETFs as well! So, who should invest in silver MFs? Those who want to invest for up to 2 years and the the income tax rate applied on the total income is below 12.5% main go for gold or silver MFs rather than ETFs. This way lower taxation rate will be applied on the capital gains made by investing in gold or silver. Those who want to invest for up to 1 year and the income tax rate applied on their total income is lower than 12.5% may also go for gold or silver MFs rather than ETFs. This way lower taxation rate will be applied on the capital gains made by investing in gold or silver.