Kotak Gold Silver Passive Fund of Fund: Subscription Open Until October 20

Kotak Mahindra Asset Management Company Ltd. (KMAMC) has launched a New Fund Offer (NFO) for the Kotak Gold Silver Passive Fund of Fund (FoF). The offer is open for subscription until October 20, giving investors an opportunity to diversify their portfolios with a unique mix of precious metals.

This fund provides investors with simultaneous exposure to both gold and silver through investments in the Kotak Gold ETF and Kotak Silver ETF. It is structured as a passive fund of funds, allowing for strategic allocation without the need for active management at the investor’s end.

Dynamic Allocation Strategy

The fund uses in-house quantitative models to dynamically adjust the allocation between gold and silver. This model-driven approach ensures disciplined investing and timely rebalancing, removing the need for manual intervention.

• Gold is typically seen as a hedge against inflation and a safe haven during geopolitical uncertainty.
• Silver offers strong growth potential, fueled by increasing industrial demand and a relatively constrained global supply.

Proven Historical Performance

A balanced 50:50 allocation to gold and silver has historically delivered strong diversification benefits. In select years, such an allocation has even outperformed major equity indices like the Nifty 500 TRI.

The Kotak Gold Silver Passive FoF offers professional fund management, cost efficiency, and tax advantages, making it an accessible and smart way to invest in precious metals, all within a single, simplified fund structure.

To remain aligned with changing market dynamics, the fund’s allocation between gold and silver is periodically reviewed and adjusted. This ensures the portfolio stays responsive to price movements and macroeconomic trends.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

Mutual Fund investments in the securities market are subject to market risks, read all the related documents carefully before investing.