In 2025, gold (with 75% returns) and silver (with 167% returns) were among the best-performing asset classes. They beat equities and fixed income by a big margin. When gold and silver prices were rising, many investors got left out, hoping the prices would correct. However, in 2026, gold and silver prices have finally corrected, opening up an opportunity for those who wish to buy.
Gold and silver can be bought in various forms, including bullion, jewellery, ETFs, mutual funds, etc. If you want to invest in both metals, consider a gold and silver mutual fund, which gives you exposure to both metals through a single fund. In this article, we will look at what a gold and silver mutual fund is, why you should invest in it, and which AMCs are offering it.
What is a gold and silver mutual fund?
A gold and silver mutual fund scheme is an open-ended scheme that predominantly invests in gold and silver. The scheme either buys physical gold and silver directly or takes indirect exposure by buying units of a gold ETF scheme and a silver ETF scheme. The scheme aims to replicate the performance of gold and silver, delivering returns similar to those of the two metals.
Most schemes have a defined allocation to gold and silver in a specified ratio. The fund manager reviews periodically and rebalances. Some schemes don’t have a defined allocation ratio; the fund manager decides it dynamically, based on market conditions.
Why invest in a gold and silver mutual fund?
Some of the reasons you may consider for investing in a gold and silver mutual fund scheme include the following.
1. Exposure to both metals in a single scheme: A gold and silver mutual fund scheme gives you exposure to both metals in a single scheme instead of two separate schemes. So, you can track the performance of just one scheme, saving you time and effort.
2. Periodic rebalancing by the fund manager: Most gold and silver schemes allocate money to the two metals in a specific ratio. The fund manager rebalances the allocation periodically, usually quarterly. When the fund manager rebalances the scheme allocation by selling one metal and reinvesting the sale proceeds in the other metal, there are no capital gains tax implications for the investor.
3. No need for physical holding: When an individual invests in a gold and silver mutual fund, they gain exposure to both metals without needing to hold them physically. Physical holding may entail locker charges for safekeeping and insurance charges for protection against damage/theft. Silver is bulky; physical storage will require space.
AMCs offering gold and silver scheme
Some of the AMCs offering the gold and silver mutual funds are:
1. Motilal Oswal Gold and Silver ETFs Fund of Funds: The Motilal Oswal Gold and Silver ETFs Fund of Funds invests in units of gold ETFs and silver ETFs. The scheme started with an allocation of gold (70%): silver (30%). Post the NFO, the weights drifted based on market movement. The scheme has a maximum weight cap of 90% for each metal. The weights are reviewed quarterly and rebalanced if the 90% weight capping is breached.
The scheme started with a higher allocation to gold (70%) because it has a higher economic value and higher liquidity than silver (30%), which is relatively more volatile. Historically, the scheme’s gold weight has remained between 55% to 85%. For silver, the weight has remained between 15% and 45%.
Let us look at how the scheme has performed.
| Time horizon | Returns CAGR | Value of lump sum Rs. 10,000 investment | Value of Rs. 10,000 monthly SIP |
| 1 year | 95.49% | Rs. 19,549 | Rs. 1,85,409 |
| 3 years | 37.10% | Rs. 25,795 | Rs. 7,29,216 |
Source: Motilal Oswal MF website
The above data is as of 31st December 2025, and for a direct plan with growth option. For a Rs. 10,000 monthly SIP, the amount invested on the first business day of every month has been considered.
2. Edelweiss Gold and Silver ETF Fund of Fund: The Edelweiss Gold and Silver ETF Fund of Fund invests in units of gold ETFs and silver ETFs with an aim to maintain a 50:50 allocation. The weights are reviewed periodically and rebalanced to 50:50, with a tolerance band of +/- 5%.
Let us see how the fund has performed.
| Time horizon | Returns CAGR | Value of lump sum Rs. 10,000 investment |
| 1 year | 112.68% | Rs. 21,268 |
| 3 years | 40.32% | Rs. 27,683 |
Source: Edelweiss MF website.
The above data is as of 31 December 2025, and for a direct plan with growth option.
3. Axis Gold and Silver Passive FoF: The Axis Gold and Silver Passive FoF invests in units of a gold ETF and a silver ETF, with a minimum of 35% allocation to each. Out of the remaining 30%, the fund manager determines the incremental allocation between gold ETFs and silver ETFs based on macroeconomic, technical, and fundamental analysis.
The scheme NFO was launched recently in December 2025.
4. Mirae Asset Gold Silver Passive FoF: The Mirae Asset Gold Silver Passive FoF invests in units of gold ETFs and silver ETFs. It started with a baseline allocation of gold (50%) and silver (50%). The fund manager decides the allocation towards gold ETFs and silver ETFs based on various macro, technical, and fundamental factors.
5. Kotak Gold Silver Passive FoF: The Kotak Gold Silver Passive FoF invests in gold ETFs and silver ETFs. The fund manager uses an in-house quantitative model to determine the allocation between gold and silver based on their price movements. The allocations are rebalanced periodically.
Should you invest in gold and silver through a single scheme?
We have discussed various schemes from some AMCs that offer exposure to gold and silver through a single scheme. The benefits include the convenience of a single scheme instead of two, saving time and effort. The fund manager does periodic rebalancing without capital gains tax implications for the investors. You can choose a scheme from various AMCs based on the gold and silver percentage allocation suited to your needs.
