As gold and silver prices continue their historic rally in 2025, mutual fund houses are racing to offer investors easy access to both metals through dual-asset passive funds. With gold doubling since 2023 and silver outperforming due to industrial demand and tight supply, investors are increasingly turning to Gold and Silver Fund of Funds (FoFs) for diversification and inflation protection.
Gold ETFs have long dominated the commodities space, but silver ETFs are relatively recent entrants, having arrived in India in 2022. Combining both in a single fund allows investors to participate in the performance of both metals without directly handling physical assets or multiple ETFs. Four major funds — Kotak Gold Silver Passive FoF, Mirae Asset Gold Silver Passive FoF, Edelweiss Gold and Silver ETF FoF, and Motilal Oswal Gold and Silver ETFs FoF — now lead this emerging category.
Kotak Gold Silver Passive Fund of Fund
Kotak Mutual Fund’s new Gold Silver Passive FoF, open for subscription till October 20, 2025, aims to generate long-term capital appreciation by investing in Kotak Gold ETF and Kotak Silver ETF. The fund will reopen on or before November 4.
The FoF uses a quantitative model to dynamically allocate between gold and silver based on their relative price movements, removing human bias. This rule-based rebalancing ensures disciplined participation in both metals’ cycles. Investors can start with a minimum of ₹100, and the benchmark is the Domestic Price of Gold & Silver TRI.
According to Nilesh Shah, MD of Kotak Mahindra AMC, gold and silver act as “all-rounders in a portfolio when markets get bouncy.” The fund is also tax-efficient since internal allocation changes do not trigger capital gains tax. The fund will invest 95–100% in gold and silver ETFs, with the remainder in short-term money market instruments.
Mirae Asset Gold Silver Passive Fund of Fund
Launched in August 2025, Mirae Asset’s Gold Silver Passive FoF offers a similar dual exposure, investing primarily in gold and silver ETFs. It maintains a base 50:50 allocation that tilts based on the gold-silver ratio and broader macro indicators such as inflation, global interest rates, and dollar strength.
With an expense ratio of 0.18% and AUM of ₹67 crore as of October 7, 2025, it is among the most cost-effective funds in its segment. “Gold acts as a stabilizer during market stress, while silver adds cyclical upside,” said Siddharth Srivastava of Mirae Asset.
Its NAV stood at ₹12.1460, reflecting steady gains since launch. The fund’s passive rebalancing approach and internal metal switching make it a tax-efficient choice for investors seeking diversification with minimal effort.
Edelweiss Gold and Silver ETF Fund of Fund
The Edelweiss Gold and Silver ETF FoF, launched in September 2022, is the oldest dual-metal fund in India and has benefitted significantly from the recent metals boom. Managed by Bhavesh Jain and Bharat Lahoti, it maintains nearly equal weights — 49.98% in gold and 49.83% in silver.
As of October 7, 2025, its NAV stood at ₹24.11, more than doubling from its launch price of ₹10, with an AUM of ₹256.4 crore. The fund has delivered 57.9% one-year returns and 31.97% annualised gains over three years, outperforming peers.
With a 0.05% expense ratio and a tiny 0.1% exit load within 15 days, it remains one of the most cost-efficient offerings. Minimum SIP starts at ₹500, and taxation applies at 20% for short-term and 12.5% for long-term gains beyond ₹1.25 lakh annually.
Motilal Oswal Gold and Silver ETFs Fund of Fund
Launched in October 2022, the Motilal Oswal Gold and Silver ETFs FoF has built a strong two-year track record. It invests 69.34% in ICICI Prudential Gold ETF and 30.17% in Nippon India Silver ETF, offering a slight gold bias for stability.
With an AUM of Rs 244.32 crore, an expense ratio of 0.15%, and no exit load, it offers liquidity and low costs. Its NAV is Rs 23.30 as of October 7, 2025. The fund delivered 59.7% one-year returns, 18.1% CAGR over two years, and 11.6% annualised over three years, making it one of the best-performing in the category.
Investors should note
All four funds provide investors with convenient, tax-efficient, and low-cost access to gold and silver.
Kotak FoF stands out for its quantitative rebalancing model and tax efficiency.
Mirae Asset impresses with its dynamic 50:50 allocation strategy and low expenses.
Edelweiss shines as the top performer with strong historical returns.
Motilal Oswal offers a stable gold-tilted portfolio for conservative investors.
With festive demand, central bank buying, and macro uncertainty lifting both metals, these funds offer investors an attractive hedge — combining gold’s defensive charm with silver’s growth edge.
Disclaimer: Business Today provides market and personal news for informational purposes only and should not be construed as investment advice. All mutual fund investments are subject to market risks. Readers are encouraged to consult with a qualified financial advisor before making any investment decisions.