Udaipur (Udaipur Kiran): Kotak Mahindra Asset Management Company Ltd. (KMAMC) has announced the launch of its latest investment product — the Kotak Gold Silver Passive Fund of Fund (FoF). This open-ended scheme invests in units of the Kotak Gold ETF and Kotak Silver ETF, providing investors with a balanced exposure to both gold and silver.

The New Fund Offer (NFO) opens for public subscription on October 6, 2025, and will close on October 20, 2025. The fund aims to deliver long-term capital appreciation by leveraging the complementary nature of these two precious metals — gold as a traditional safe-haven asset and silver for its growing industrial demand.

Speaking about the launch, Nilesh Shah, Managing Director, Kotak Mahindra Asset Management Company Ltd., said:

“Asset allocation is like picking the right players for every pitch. Gold and silver have always played the role of all-rounders in 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 out of these metals. The Kotak Gold Silver Passive FoF offers a disciplined way to diversify, without betting on just one outcome. In investing, it’s not overconfidence but the right mix and consistency that win matches.”

The Kotak Gold Silver Passive FoF is designed for investors seeking long-term portfolio diversification beyond equity and debt markets, particularly during periods of economic uncertainty.

A key advantage of this fund is its tax efficiency. Unlike direct ETF investments, where rebalancing between gold and silver incurs capital gains tax, this fund manages allocations internally, providing a seamless and tax-efficient investment experience.

Rohit Tandon, Fund Manager of the Kotak Gold Silver Passive FoF, added:

“This fund offers a simple, rule-based solution for allocating across precious metals. By combining the potential of both gold and silver within one product, investors can benefit from dynamic market movements. The fund uses a quantitative model to automatically rebalance exposure between Kotak Gold ETF and Kotak Silver ETF, ensuring a responsive and balanced investment approach.”

The Kotak Gold Silver Passive FoF thus provides investors with a smart, systematic, and convenient way to gain diversified exposure to two time-tested asset classes, aligning with a disciplined wealth-building strategy.