Dhanteras 2025: Radhika Gupta calls this a 'simple, powerful' way to invest in gold, silver

Edelweiss Mutual Fund’s Managing Director and CEO, Radhika Gupta, has described the Edelweiss Gold and Silver ETF Fund of Fund (FoF) as one of the company’s simplest yet most powerful offerings — a product designed to help investors gain balanced exposure to precious metals.

In a post on X (formerly Twitter), Gupta said, “One of our simplest and most powerful offerings, and the oldest gold-silver combined fund in India, is a solution for any investor looking for metals exposure.” The Edelweiss Gold and Silver ETF FoF, launched on September 14, 2022, holds the distinction of being India’s first and oldest fund that combines investments in both gold and silver ETFs.

Gupta explained that while silver has enjoyed a strong run recently, it remains a highly volatile metal, often influenced by industrial demand from sectors such as renewable energy, semiconductors, and electronics. Its price movements are sharper compared to gold, which has historically acted as a stable and reliable store of value during uncertain times.

“This is why silver works best when blended with the stability of gold,” Gupta said. The fund, therefore, provides investors with a simple, diversified way to capture the upside potential of silver without exposing their portfolio to excessive risk.

A Gold and Silver ETF FoF is a mutual fund that invests in other Exchange Traded Funds (ETFs) tracking the prices of gold and silver. This approach allows investors to own both metals without the need to buy physical gold or silver, while benefiting from daily liquidity and lower storage costs. Similar products in the market include the Kotak Gold and Silver Passive FoF and the Motilal Oswal Gold and Silver ETF FoF, but Edelweiss’s version remains the pioneer in this category.

Edelweiss Multi Asset Omni FoF

For investors seeking broader diversification, Gupta also highlighted the Edelweiss Multi Asset Omni FoF, a newer fund designed for investors who prefer exposure across multiple asset classes. The Omni FoF holds 65% in large and midcap-oriented equities, 20% in gold and silver (split equally), and 15% in debt instruments, creating a balanced portfolio suitable for long-term wealth creation.

In response to growing investor demand for hybrid index funds, Gupta noted that funds of funds (FoFs) can serve as a practical substitute. “I’ve received several requests to create hybrid index funds, but currently, there isn’t a regulatory framework for them. I do believe FoFs accomplish much of that,” she said on X.

Gupta added that investors often find it challenging to determine the right allocation between gold and silver — when to increase exposure and when to cut back. That challenge, she said, inspired Edelweiss to launch the industry’s first Gold-Silver FoF three years ago.

“When we launched the fund, we believed both metals were undervalued and that a simple 50:50 gold–silver combination could serve investors well,” Gupta said.

By combining stability and growth potential in one product, the Edelweiss Gold and Silver ETF FoF continues to represent a strategic, easy-to-access investment option for those seeking to add the timeless appeal of precious metals to their portfolio.

Gold-Silver ETF FoFs

Among India’s gold–silver Fund of Funds (FoFs), Edelweiss and Motilal Oswal have emerged as clear leaders, delivering stellar three-year returns of 31.7% and 29.5%, respectively, as of October 2025. Edelweiss tops on absolute performance, while Motilal Oswal scores higher on risk-adjusted returns with a superior Sharpe ratio of 1.69 and no exit load. Both funds benefit from early entry and robust AUM above Rs 800 crore. The newly launched Mirae Asset FoF (August 2025) and Kotak Gold Silver Passive FoF (October 2025 NFO) expand the category’s choices with lower minimum investments and competitive costs.

While Mirae offers a convenient SIP route, Kotak introduces a model-driven dynamic allocation between gold and silver. Overall, gold–silver FoFs are gaining traction as diversified, low-cost hedging tools, balancing safety and growth amid volatile markets and rising investor appetite for precious metal exposure.