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New Delhi: Zerodha Fund House has launched a new investment offering aimed at capitalizing on the growing industrial and strategic importance of silver. The newly introduced Zerodha Silver ETF Fund of Fund (FoF) is an open-ended mutual fund scheme that will primarily invest in the units of the Zerodha Silver Exchange-Traded Fund (ETF). The New Fund Offer (NFO) opens for subscription today and will remain open until July 4, 2025.
This latest offering reflects Zerodha’s broader commitment to delivering simple, cost-effective, and transparent investment products to Indian investors. The Silver ETF FoF provides an accessible route to gain exposure to silver—a commodity whose relevance is growing not only as a precious metal but also as a key industrial input in several next-generation technologies.
A Passive Strategy with a Metallic Focus
According to the fund house, the Zerodha Silver ETF FoF adopts a passive investment strategy, aiming to replicate the performance of physical silver in India through its underlying ETF. The scheme is designed to offer investors a hassle-free method to participate in silver’s price movements without the complexities of physical storage or direct commodity trading.
The fund will allocate between 95% to 100% of its corpus to the units of the Zerodha Silver ETF, while the remaining 0% to 5% may be held in debt and money market instruments to manage liquidity and operational requirements.
“The objective is simple—to provide capital appreciation by tracking silver prices in a straightforward and low-cost manner,” the company said in a statement. The structure of the FoF enables investors to gain commodity exposure while benefiting from the regulated, transparent framework of mutual fund investing.
Industrial Demand Boosting Silver’s Appeal
Explaining the rationale behind the launch, Vishal Jain, CEO of Zerodha Fund House, emphasized silver’s rising significance across various high-growth sectors.
“The demand for silver is rising across industries like renewable energy, electronics, and automobiles,” Jain said. “This fund provides a convenient way for investors to participate in silver’s long-term growth without dealing with the logistical challenges of physical silver ownership.”
Silver is increasingly seen as a strategic commodity, with its use in solar photovoltaic cells, electric vehicle components, and advanced electronics making it a crucial material in the green and digital economy. As global decarbonization efforts gather pace, demand for silver is expected to surge, making it a potentially attractive asset class for long-term investors.
Accessible and Affordable Entry Point
The fund is aimed at retail investors looking for diversification within their portfolios. The minimum initial investment during the NFO period is set at ₹500, making it accessible to a wide range of investors. The fund will be priced at an initial Net Asset Value (NAV) of ₹10 per unit, with no upper limit on additional investments.
According to the fund house, investors will be able to subscribe to the Zerodha Silver ETF FoF through Coin by Zerodha, the company’s mutual fund investment platform, as well as through CAMS (Computer Age Management Services) and other participating distributors.
Systematic Investment Plans (SIPs) will also be available, enabling investors to accumulate exposure to silver gradually, without the need for lump-sum outlays.
Thematic Investing for the Future
The fund also aligns with the broader investment themes of sustainability, technological transformation, and commodities diversification—trends that are increasingly resonating with younger and more informed retail investors in India.
Vaibhav Jalan, Chief Business Officer of Zerodha Fund House, noted that the Silver ETF FoF adds a strategic dimension to investors’ portfolios.
“As silver plays a growing role in emerging technologies and sustainability themes, this fund offers investors an easy entry point into the metal’s market,” Jalan said. “It complements our broader philosophy of building a product suite that is rooted in simplicity, affordability, and long-term value.”
A New Addition to a Growing Product Line
The Zerodha Silver ETF FoF becomes the latest addition to the fund house’s steadily expanding suite of mutual fund products. Zerodha Fund House, a joint venture between Zerodha and smallcase, has quickly earned a reputation for delivering low-cost, passive investment options aimed at retail investors seeking transparency and ease of use.
The launch is part of a growing trend in the Indian mutual fund industry, where investors are increasingly embracing passive funds, commodities-based ETFs, and international diversification. With growing awareness about asset allocation and market cycles, silver is now being viewed not just as a hedge against inflation, but as a dynamic asset class with long-term industrial potential.
Conclusion
As India’s retail investment landscape continues to evolve, the Zerodha Silver ETF FoF offers a timely and relevant product for investors looking to diversify beyond equities and traditional debt instruments. With the ease of SIPs, low investment thresholds, and the backing of a trusted platform, Zerodha’s new fund could well emerge as a popular route for those seeking to benefit from silver’s growing role in the modern economy.
Investors are, however, advised to consult financial advisors and understand the risks associated with commodity-based funds, including price volatility and tracking errors, before making investment decisions.
