Radhika Gupta on how a 50:50 gold-silver mix worked for the industry’s first FoF

With investors often struggling to determine the right mix between gold and silver and when to adjust their holdings, Radhika Gupta, CEO of Edelweiss Mutual Fund, explains that when the fund house launched the industry’s first gold–silver FoF three years ago, they believed both in the asset class being undervalued and in the power of a simple 50:50 gold-silver combination.

According to Gupta, “We as a fund house have always liked the simplicity of 50:50, where gold provides the stability of large caps, and silver delivers the alpha of midcaps.”

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The CEO further added that the past returns looked so poor that the fund house wondered how it would sell the Edelweiss Gold-Silver FoF. Coincidentally, the fund’s inception date also happens to be her birthday.

She posted on social media platform X: “When we launched @EdelweissMF Gold–Silver FoF, a first-to-industry fund, three years ago (and I just realized the inception date is my birthday!), the past returns looked so poor that the team wondered how it would sell.”

Gold’s role as a safe-haven asset is well established. Strong central bank buying, macroeconomic uncertainty, and robust global ETF inflows have all been key catalysts for the yellow metal. Silver, on the other hand, brings an added dimension. “Silver provides the kick in the combo,” Gupta explains.

According to TEMPO, a monthly release by Edelweiss Mutual Fund, silver was a contrarian bet in May, especially with the elevated gold–silver ratio signaling potential upside for the white metal.

With recent strong performance, flows and fund size have grown significantly, and the success of the Gold-Silver FoF has inspired other fund houses to launch similar offerings.

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Reflecting on the journey, Gupta concludes, “Sometimes, the real magic lies in the power of simplicity.”

Along with the post, Gupta shared an image highlighting that historically, elevated levels in the gold-silver ratio have often signaled silver being undervalued relative to gold, preceding periods of outperformance by silver. In other words, silver currently looks cheap compared to gold, making it an attractive contrarian investment opportunity.