Silver prices are continuously making record after record. It is believed that by December 31, it may cross Rs 2.5 lakh. In such a situation, many people might be feeling the desire to invest money in it. But due to rising prices they are not able to invest in silver. So there is no need to panic, we are telling you about such forms of silver in which you can invest digitally.
The special thing is that you do not need to invest Rs 2 lakh for this. You can invest in these with just Rs 500. Yes, we are talking about silver ETF. Let us tell you how to invest in them and how much return you can get from it.
What is Silver ETF, how to invest in it?
First let’s talk about silver ETF. After all, what is this and how can one invest in it? A silver ETF is a fund that tracks the price of physical silver and gives you the opportunity to invest in it without purchasing actual silver. You can also understand this that it is a kind of mutual fund which buys 99.9% pure silver and keeps it in safe vaults, and its units can be bought and sold like shares on the stock exchange, so that you do not have to worry about the storage and security of physical metal and it is an easy and transparent way of investment.
How much will have to be invested
You can invest in Silver ETF even with a small amount like Rs 500. Suppose the current price of silver in the market is Rs 2 lakh per kg. Whereas ETF is made up of its units which are issued by many companies. Here we give you an example of TATA Silver ETF. There are many types of ETFs available on Tata Silver Exchange Fund, here you have to invest in it per share. For example, the current price of 1 unit of TATA Silver ETF is around Rs 22. So you can buy about 22 units for Rs 500. As the price of silver increases or decreases in the market, its effect will be visible on your investment here also.
How much return in 1 year
If we look at the returns of this fund of Tata Silver ETF, this fund has given returns of about 137 percent to the investors in the last 1 year. Meaning, if someone had invested Rs 1 lakh in this fund in one year, his money would have become around Rs 2 lakh 37. That means a net profit of Rs 1.37 lakh in 1 year. Similarly, different ETFs of many companies are available in the market. The special thing about silver ETF is that you do not need to buy physical silver for it. Since it is not physical, you do not have to worry about the purity of silver.