विशेषज्ञ की सलाह चाहिए?हमारे गुरु मदद कर सकते हैं
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Ramalingam Kalirajan11442 Answers |Ask - Follow
Mutual Funds, Financial Planning Expert - Answered on Aug 19, 2026
Asked on - Aug 17, 2026
Nippon India Silver ETF FOF I have invested in above MF, but it has gone down over 25%, can I stay invested or exit
?
Ans: You have asked the right question after a 25% fall.
A fall of this size can feel uncomfortable.
But selling only because of the fall is usually not the best approach.
Silver is a commodity asset, not a core wealth-building asset.
Its price can move sharply in both directions.
» Why Silver Can Fall Sharply
Silver prices are affected by many factors.
– Global interest rates.
– US dollar movements.
– Industrial demand.
– Global economic growth.
– Investor demand for precious metals.
– Commodity market sentiment.
Therefore, silver can remain volatile even when other assets perform well.
» Should You Stay Invested?
The answer depends on why you invested.
If silver was purchased as a small portfolio diversifier, you can consider holding it.
There is no need to exit only because it is down 25%.
But if you invested a large part of your portfolio, reassessment is needed.
A commodity allocation should normally remain limited.
» Important Point About Silver ETF-Based Investments
Your investment is linked to silver through an ETF structure.
Such products mainly provide silver-price exposure.
They do not have an active fund manager selecting businesses.
Therefore, they have limited ability to protect you during silver price declines.
For your core portfolio, diversified actively managed equity funds can provide better growth potential.
They can also diversify across companies and sectors.
» What I Would Consider
I would not add more money simply because it has fallen 25%.
That is called averaging without checking the original investment reason.
First check its percentage in your total portfolio.
If the allocation is small, holding may be reasonable.
If the allocation has become too large, gradual rebalancing can be considered.
Do not make a sudden decision based only on the current loss.
» Tax Aspect
If you decide to exit, taxation should also be checked.
The taxation of such non-equity mutual fund investments depends on the applicable rules.
Your purchase date and holding period are also relevant.
Therefore, calculate the tax impact before redemption.
» Final Insights
My first preference would be not to panic-sell.
Review the silver allocation within your complete portfolio.
If it is a small diversification component, holding can be considered.
If it is a large allocation, gradually reducing exposure may be sensible.
Going forward, keep precious metals as a supporting asset.
Your core wealth creation should come from diversified investments.
Best Regards,
K. Ramalingam, MBA, CFP,
AMFI-Registered MFD – ARN 4188
www.holisticinvestment.in
https://www.linkedin.com/in/ramalingamcfp/
(more)
A fall of this size can feel uncomfortable.
But selling only because of the fall is usually not the best approach.
Silver is a commodity asset, not a core wealth-building asset.
Its price can move sharply in both directions.
» Why Silver Can Fall Sharply
Silver prices are affected by many factors.
– Global interest rates.
– US dollar movements.
– Industrial demand.
– Global economic growth.
– Investor demand for precious metals.
– Commodity market sentiment.
Therefore, silver can remain volatile even when other assets perform well.
» Should You Stay Invested?
The answer depends on why you invested.
If silver was purchased as a small portfolio diversifier, you can consider holding it.
There is no need to exit only because it is down 25%.
But if you invested a large part of your portfolio, reassessment is needed.
A commodity allocation should normally remain limited.
» Important Point About Silver ETF-Based Investments
Your investment is linked to silver through an ETF structure.
Such products mainly provide silver-price exposure.
They do not have an active fund manager selecting businesses.
Therefore, they have limited ability to protect you during silver price declines.
For your core portfolio, diversified actively managed equity funds can provide better growth potential.
They can also diversify across companies and sectors.
» What I Would Consider
I would not add more money simply because it has fallen 25%.
That is called averaging without checking the original investment reason.
First check its percentage in your total portfolio.
If the allocation is small, holding may be reasonable.
If the allocation has become too large, gradual rebalancing can be considered.
Do not make a sudden decision based only on the current loss.
» Tax Aspect
If you decide to exit, taxation should also be checked.
The taxation of such non-equity mutual fund investments depends on the applicable rules.
Your purchase date and holding period are also relevant.
Therefore, calculate the tax impact before redemption.
» Final Insights
My first preference would be not to panic-sell.
Review the silver allocation within your complete portfolio.
If it is a small diversification component, holding can be considered.
If it is a large allocation, gradually reducing exposure may be sensible.
Going forward, keep precious metals as a supporting asset.
Your core wealth creation should come from diversified investments.
Best Regards,
K. Ramalingam, MBA, CFP,
AMFI-Registered MFD – ARN 4188
www.holisticinvestment.in
https://www.linkedin.com/in/ramalingamcfp/