Why silver emerged as the biggest common bet for top multi-asset funds in May

Silver emerged as the standout investment theme among leading multi-asset mutual funds in May 2026, with portfolio disclosures from Capitalmind, DSP Mutual Fund and Kotak Mutual Fund showing a clear increase in exposure to the precious metal. While the three fund houses took different calls on equities and debt, all converged on one strategy—boosting silver allocations as part of broader portfolio diversification.

The common move comes at a time when fund managers are balancing growth opportunities in equities with the need to hedge against global uncertainty, inflation risks and market volatility.

Boldest commodity shift

Capitalmind Multi Asset Fund made the most aggressive move towards silver during the month.

The fund introduced a fresh 8.2% allocation to silver through the Mirae Asset Silver ETF and Kotak Silver ETF, while maintaining a 10% allocation to gold. To accommodate the increased commodity exposure, it reduced equity allocation from 42.7% to 38.4% and debt exposure from 47.5% to 40.8%.

Capitalmind also added a 10.3% derivatives overlay, including positions linked to aluminium (8.6%) and crude oil (1.6%), indicating a broader commodities strategy rather than a precious metals-only approach.

Interestingly, the fund made no fresh stock additions or exits. Instead, it increased allocations to existing holdings such as Bajaj Auto, Marico, Infosys, Torrent Pharmaceuticals and HCL Technologies.

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Commodities with equity reshuffle

DSP Multi Asset Fund also increased its exposure to precious metals, albeit in a more measured manner.

The fund raised gross gold exposure to 14.6% (10% net after hedge) and increased silver allocation to 2.1%, while reducing debt allocation to 20.1% and marginally increasing equity exposure to 43.6%.

Alongside the commodity allocation, DSP carried out a major reshuffle in its equity portfolio. It added Reliance Industries, Bharat Petroleum Corporation (BPCL), Bayer Cropscience and Info Edge, while exiting Bajaj Finserv, Mahindra & Mahindra Financial Services, GMM Pfaudler, Craftsman Automation and Ipca Laboratories.

The fund also increased exposure to Infosys, HCL Technologies, Hero MotoCorp and KFin Technologies, signalling confidence in select technology and auto names.

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Silver with a defensive stance

Kotak Multi Asset Fund also strengthened its silver exposure, increasing allocation to 8.2%, while keeping gold exposure unchanged at 4.9%.

Unlike Capitalmind and DSP, however, Kotak simultaneously raised its debt allocation from 13% to 15.9% while reducing equity exposure from 72.5% to 70.6%, indicating a relatively cautious market stance.

The fund exited Wipro entirely and initiated fresh positions in Premier Energies and Billionbrains Garage Ventures (Groww). It also increased allocations to Maruti Suzuki, Tata Chemicals, Indus Towers, InterGlobe Aviation and LIC.

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Why fund managers are warming up to silver

Silver is increasingly finding favour among multi-asset fund managers because it offers a combination of defensive and growth characteristics. Like gold, it is viewed as a hedge during periods of uncertainty. At the same time, unlike gold, silver enjoys strong industrial demand from sectors such as solar energy, electric vehicles, electronics and advanced manufacturing.

The latest portfolio changes suggest fund managers are not replacing gold with silver but using both metals to diversify risk. While their equity strategies differed considerably in May, the increased allocation to silver across all three portfolios points to a shared conviction that the metal can play a larger role in balancing portfolios amid evolving market conditions.

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