NFO Alert: Axis Mutual Fund launches Axis Gold & Silver Passive FoF

Axis Mutual Fund 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 or NFO of the fund is open for subscription and will close on December 22. The Axis Gold & Silver Passive FoF offers investors a convenient and transparent way to participate in the performance of gold and silver—two globally recognised stores of value—through a single investment vehicle.

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The scheme will predominantly invest in units of Gold ETFs and Silver ETFs, offering a balanced allocation to both commodities.

"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,” said B. Gopkumar, MD & CEO, Axis AMC.

The Axis Gold & Silver Passive FoF is designed as an open-ended fund of funds scheme that invests primarily in units of Gold ETFs and Silver ETFs, ensuring investors gain exposure to both metals in a single product.

The scheme will benchmark its performance against the domestic price of gold and silver in equal proportion (50:50). Accessibility is a core feature of this fund—the minimum application amount during the NFO is just Rs 100, making it suitable for a wide range of investors. The fund will be jointly managed by Pratik Tibrewal and Aditya Pagaria.

If redeemed/switched out within 15 days from allotment date, an exit load of 0.25% is applicable, and if redeemed/switched out after 15 days, the exit load will be nil.

The fund is suitable for investors who are seeking long-term capital appreciation and want to invest in an open-ended fund of funds scheme predominantly investing in units of gold and silver exchange-traded funds.

Why commodities matter in 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.

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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.