Need Expert Advice?Our Gurus Can Help

Ramalingam Kalirajan |11060 Answers |Ask -Follow

Mutual Funds, Financial Planning Expert - Answered on Feb 03, 2026

Ramalingam Kalirajan has over 23 years of experience in mutual funds and financial planning.
He has an MBA in finance from the University of Madras and is a certified financial planner.
He is the director and chief financial planner at Holistic Investment, a Chennai-based firm that offers financial planning and wealth management advice.... more

Question by vishal on Feb 02, 2026Hindi

I have invested in SBI silver ETF FoF Direct Fund Growth. In 30 days i was getting 60percent returns but silver rates down the return is only 28percent. So may i stay invested OR withdraw the investment.

Ans: Appreciate your timely observation and honesty in reviewing your investment. Many investors ignore such sharp movements. You noticed it early, which itself is a strength.

» Understanding What Happened
– Silver is a highly volatile asset
– Price movements are driven by global factors, not business growth
– Sharp rises are often followed by sharp corrections
– A 60 percent short-term rise was abnormal and not sustainable

» Nature of Silver as an Asset
– Silver does not generate earnings or cash flow
– Returns come only from price movement
– It does not compound like equity mutual funds
– Long-term wealth creation from silver is uncertain

» Risk of Staying Fully Invested
– High volatility can test patience and emotions
– Gains can reduce very fast, as you already experienced
– If markets turn against commodities, recovery may take long
– Silver should not be treated as a core long-term investment

» Direct Fund Concern
– You are holding a Direct Fund, which lacks professional handholding
– No Certified Financial Planner is guiding entry, exit, or allocation
– In volatile assets like silver, emotional decisions are common
– Regular funds through an MFD with CFP credential help manage timing and discipline

» Decision Insight: Stay or Withdraw
– If the investment was made for short-term profit, partial or full exit is sensible
– Booking gains protects capital and avoids regret
– If held for diversification, allocation should be very limited
– Silver exposure should never dominate a long-term portfolio

» Better Portfolio Alignment
– Long-term goals need assets that grow steadily
– Actively managed equity mutual funds adjust to market cycles
– They reduce downside risk through active decisions
– This supports your wealth goal better than commodities

» Tax Awareness
– Short-term gains on such investments can attract higher tax
– Frequent entry and exit reduces post-tax return
– Discipline matters more than timing in long-term planning

» Finally
– Do not let recent high returns anchor your decision
– Protect gains where the asset lacks compounding power
– Keep commodities as a small support, not a return engine
– Align investments with goals, not market excitement

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

https://www.youtube.com/@HolisticInvestment

DISCLAIMER: The content of this post by the expert is the personal view of the rediffGURU. Users are advised to pursue the information provided by the rediffGURU only as a source of information to be as a point of reference and to rely on their own judgement when making a decision.