Axis Mutual Fund Introduces Gold and Silver Passive Investment FoF

Axis Mutual Fund, one of India’s leading asset management companies, today announced the launch of Axis Gold & Silver Passive Fund of Fund (FoF), an open-ended fund of funds scheme investing in units of gold and silver exchange traded funds (ETFs). The New Fund Offer (NFO) will open for subscription on December 10, 2025 and close on December 22, 2025. The Axis Gold & Silver Passive FoF offers investors a convenient and transparent way to participate in the performance of gold and silver—two globally recognized stores of value—through a single investment vehicle. The scheme will predominantly invest in units of Gold ETFs and Silver ETFs, offering a balanced allocation to both commodities.

Speaking on the launch, B. Gopkumar, MD & CEO, Axis AMC, said: "Gold and silver have historically served as effective hedges against inflation and currency volatility, while also offering diversification benefits to portfolios. With Axis Gold & Silver Passive FoF, we are providing investors a simple and cost-efficient way to gain exposure to these precious metals without the complexities of physical ownership."

Why Commodities Matter in a Portfolio

Commodities like gold and silver have historically played a critical role in portfolio diversification. Commodities often exhibit low correlation with traditional asset classes, making them an effective hedge against inflation, currency depreciation, and market volatility. Gold is widely regarded as a safe-haven asset, while silver combines monetary value with industrial demand, adding a unique dimension to long-term investment strategies. 

Incorporating commodities into a portfolio can help in portfolio diversification and enhance resilience during uncertain economic cycles. However, direct investment in physical commodities can be cumbersome and costly. This is where passive investing through FoFs becomes a game-changer—offering simplicity, transparency, and cost efficiency without the operational challenges of physical ownership. Furthermore, it eliminates human bias in allocation and provides a disciplined approach aligned with market benchmarks.