Abhishek Sinha
Mumbai, October 8, 2025: Kotak Mahindra Asset Management Company Ltd. (KMAMC) has announced the launch of the Kotak Gold Silver Passive Fund of Fund (FoF) — an open-ended investment scheme offering investors an opportunity to participate in both gold and silver through a single investment. The scheme opens for public subscription on October 6, 2025, and closes on October 20, 2025.
The fund aims to generate long-term capital appreciation by investing in units of Kotak Gold ETF and Kotak Silver ETF, giving investors a diversified and cost-efficient exposure to both precious metals.
Diversified Exposure to Gold and Silver
Gold and silver have long been regarded as safe-haven assets, protecting investors against inflation and currency depreciation. With global central banks increasing their gold reserves and silver witnessing rising demand across industrial and investment segments, this new fund offers a timely entry point into the precious metals space.
The Kotak Gold Silver Passive FoF invests directly in Kotak Gold ETF and Kotak Silver ETF, using an in-house quantitative model to determine allocation between the two metals. The model dynamically rebalances based on price movements and market shifts, ensuring a disciplined, data-driven, and unbiased investment approach.
Nilesh Shah: “Gold and Silver Are the All-Rounders of a Portfolio”
Nilesh Shah, Managing Director, Kotak Mahindra Asset Management Company Ltd., explained the rationale behind the fund:
“Asset allocation is like picking the right players for every pitch. Gold and silver have always been the all-rounders of a portfolio when markets get bouncy. With central banks accumulating gold, silver’s industrial relevance expanding, and equity markets being volatile, investors need to make the most of these metals.
Adding precious metals isn’t about chasing quick runs — it’s about building a resilient team for all seasons. The Kotak Gold Silver Passive FoF offers a disciplined way to diversify, without betting on just one outcome. Because in investing, it’s not overconfidence but the right mix and consistency that win matches.”
Tax-Efficient and Convenient Investing
Unlike investing separately in gold and silver ETFs, where switching allocations can trigger capital gains tax, the Kotak Gold Silver Passive FoF handles rebalancing internally. This structure offers a tax-efficient way to access both metals without incurring additional tax liability on switches.
The fund is ideal for investors seeking long-term capital appreciation and portfolio diversification beyond traditional equity and debt assets — particularly in periods of macroeconomic uncertainty.
Quantitative, Rule-Based Strategy
Rohit Tandon, Fund Manager, Kotak Gold Silver Passive FoF, said:
“The Kotak Gold Silver Passive FoF is designed to offer investors a simple solution for allocating to precious metals. By combining the potential of both gold and silver within a single fund, investors benefit from the complementary nature of these two assets.
Our rule-based quantitative model dynamically rebalances between Kotak Gold ETF and Kotak Silver ETF, helping capture market shifts and ensuring responsive exposure to both metals over time.”
Key Details
- Scheme Type: Open-ended Fund of Fund
- Underlying Assets: Kotak Gold ETF and Kotak Silver ETF
- NFO Period: October 6 – October 20, 2025
- Minimum Investment: ₹100 and in multiples thereafter
- Objective: Long-term capital appreciation through exposure to gold and silver
- More Information: Kotak MF – Official Website
Investor Advisory
Investors are advised to consult their financial and tax advisors before investing to ensure product suitability. Kotak Mahindra Asset Management Company Ltd. does not guarantee or assure any returns.
