Silver ETF Inflows Rise 55% to ₹1,974 Crore in September Despite Price Correction

Key Takeaways

Silver exchange-traded funds recorded net inflows of ₹1,974 crore in September 2026, approximately 55% higher than the ₹1,271 crore recorded in August.

Silver ETF assets under management stood at approximately ₹81,636 crore in September, compared with ₹85,488 crore in August.

The increase in net investment inflows occurred during a period of considerable volatility in silver prices, highlighting the distinction between investor flows and changes in fund valuations.

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Silver exchange-traded funds (ETFs) attracted net inflows of ₹1,974 crore during September 2026, an increase of approximately 55% over August, according to mutual fund industry data.

The September inflow was around ₹703 crore higher than the previous month's ₹1,271 crore.

The figures show that the category continued to receive net investments during a period marked by sharp movements in international and domestic silver prices.

Silver ETFs offer exchange-traded exposure to the precious metal, with their investment values broadly linked to domestic silver prices, subject to expenses and tracking differences.

Silver ETF Inflows Increase in September

The category recorded the following figures:

The increase in net inflows was accompanied by a modest rise in the number of folios.

However, assets under management declined by approximately ₹3,852 crore between August and September, despite the positive investment flows.

This difference reflects the fact that a fund category's asset value depends on both investor transactions and changes in the market value of its holdings.

Positive inflows do not necessarily result in higher overall assets when the underlying investment experiences a decline in valuation.

Silver Prices Remain Volatile

Silver prices underwent a sharp correction from their January highs.

International silver had reached nearly $117 per ounce in January 2026. By October 23, prices had fallen to slightly above $54 per ounce, according to market levels reported on October 29.

In India, MCX silver prices were reported at approximately ₹1.91 lakh per kilogram on October 27, compared with a January peak of around ₹3.85 lakh per kilogram.

These figures illustrate the scale of price volatility during the year.

The October market prices should not be confused with September's monthly mutual fund inflow figures, which cover an earlier reporting period.

How Silver ETFs Reflect Market Movements

Silver ETFs typically hold physical silver and seek to track the domestic price of the metal.

Their market prices are influenced by changes in the underlying silver price, fund expenses, tracking differences and trading conditions.

Individual ETF returns may therefore differ from the percentage movement in silver prices.

ETF units are traded on stock exchanges, where market prices can also temporarily differ from the value of the underlying assets.

Inflows and Returns Measure Different Things

September's increase in silver ETF inflows indicates that purchases exceeded redemptions at the category level.

It does not establish that silver ETFs generated positive returns during the month.

Similarly, a rise in investor folios does not necessarily indicate an equivalent increase in unique investors.

The September data highlights continuing investment activity in silver ETFs even as the broader precious-metals market experienced volatility.

The figures provide a factual picture of category-level flows and assets without indicating the direction of future silver prices or ETF returns.