Upcoming Mutual Fund NFOs This Week (October 6 –10, 2025)

The mutual fund market has seen limited new launches this week, with Kotak Mahindra Mutual Fund being the sole entrant. The fund house has introduced the Kotak Gold Silver Passive Fund of Funds (FOF), an open-ended scheme designed to give investors simultaneous exposure to both gold and silver ETFs.

The new fund offer (NFO) opened for subscription on October 6, 2025, and will remain open until October 20, 2025, allowing investors to participate in the combined performance of gold and silver through a single investment vehicle.

Kotak Gold Silver Passive FOF – Overview

The Kotak Gold Silver Passive FOF primarily invests in the Kotak Gold ETF and Kotak Silver ETF, offering investors an opportunity to benefit from the diversification and potential upside in both metals. The fund aims to track gold and silver prices through ETF holdings without requiring investors to buy the underlying physical assets.

The fund adopts a passive management strategy, aiming to minimise tracking error while replicating the combined performance of gold and silver markets.

Investment Objective and Strategy

The investment objective of the Kotak Gold Silver Passive FOF is to generate long-term capital appreciation by investing primarily in units of Kotak Gold ETF and Kotak Silver ETF. The scheme seeks to leverage gold’s stability and silver’s industrial demand to deliver a balanced risk-reward outcome.

It will maintain flexibility to periodically rebalance allocations between gold and silver based on prevailing market conditions to optimise diversification. The strategy enables investors to participate in the growth potential of silver while retaining the defensive strength of gold.

Benefits Of Investing in the Kotak Gold Silver Passive FOF

• Dual Exposure: Combines the growth potential of silver with the safe-haven appeal of gold.

• Convenience: Single investment across both asset classes.

• Cost Efficiency: Lower expense ratios common to passive fund structures.

• Liquidity: Open-ended format allows redemption on any business day.

Tax Efficiency: Treated as an equity-oriented fund for taxation, with 12.5% long-term capital gains tax after one year on gains above ₹1.25 lakh.

Read More: Upcoming IPOs This Week (Oct 6–10)

Conclusion

With precious metals gaining attention amid inflationary trends and global economic uncertainty, the Kotak Gold Silver Passive FOF provides investors with a convenient way to diversify their portfolios. The NFO is open for subscription until October 20, 2025.

Investors are advised to review the scheme information document (SID) and assess individual risk profiles before investing.

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. 

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