'Past returns looked so poor...': Radhika Gupta on Edelweiss Gold & Silver FoF origin amid current gold-silver rally

As gold prices touched an all-time high of Rs 1,23,900 per 10 grams of 24K gold in Delhi earlier this week, investors are rushing to gold-backed assets to strengthen their portfolios ahead of Diwali. While gold continues its record-breaking rally, silver has quietly outperformed all other asset classes in 2025, emerging as the year’s standout performer.

Beginning the year at $28.92 per ounce, silver has surged past $46 per ounce by late September — an impressive 61% return. Analysts attribute this sharp rise to a mix of industrial demand revival, particularly from solar and electronics sectors, a US Federal Reserve rate cut, and five consecutive years of supply deficits. The weaker rupee and a historically high gold-silver ratio further amplified domestic silver returns, fueling strong investor interest in silver ETFs, which have mirrored this 60% rise.

Reflecting on the twin-metal rally, Radhika Gupta, CEO of Edelweiss Mutual Fund, recently revisited the origins of India’s first Gold and Silver Fund of Fund (FoF) — the Edelweiss Gold & Silver FoF, launched three years ago. “When we launched the fund, past returns looked so poor that even our team wondered how it would sell,” she wrote on X (formerly Twitter). “But we believed in both the asset class being undervalued and in the power of a simple 50:50 gold–silver combination.”

Gupta explained that gold plays the role of a safe haven, benefiting from central bank purchases, global ETF inflows, and macroeconomic uncertainty, while silver acts as the growth catalyst, driven by its dual identity as both an industrial and a precious metal. The 50:50 strategy, she said, offers stability and upside — “gold provides the stability of large caps, and silver the alpha of midcaps.”

With gold and silver prices soaring, flows into the Edelweiss Gold & Silver FoF have surged, and several other fund houses are now launching similar dual-metal products. Gupta concluded that the fund’s success underscores an important investing lesson:

“Sometimes, the real magic lies in the power of simplicity — a clear, balanced idea can deliver the most enduring results.”

Edelweiss Gold & Silver FoF

Edelweiss Gold and Silver ETF FoF – Regular Plan has delivered strong returns since its launch in September 2022. As of October 7, 2025, the fund posted a 3-month return of 10.25%, reflecting recent momentum in precious metals. Over 6 months, returns are estimated at around 26%, supported by consistent NAV growth. The 1-year return stands at 62.16%, highlighting a sharp rally in the underlying gold and silver ETFs. Over 2 years, the fund has generated a CAGR of roughly 27%, while the 3-year annualised return is 16.97%, indicating robust medium-term performance since inception.

Period    Return (%)
3 Months    10.25
6 Months    ~26.00 (Estimated)
1 Year    62.16
2 Years    ~27.00 (CAGR)
3 Years    16.97 (CAGR)