The fund aims to provide investors with exposure to gold and silver through investments in the Kotak Gold ETF and Kotak Silver ETF.
The fund is designed as a passive FoF that dynamically allocates between gold and silver based on in-house quantitative models.
This approach is intended to help investors maintain disciplined exposure and timely rebalancing without manual intervention.
Gold and silver are traditionally used as portfolio diversifiers, as they exhibit low correlation with equities and with each other. Gold is often seen as a hedge against inflation and geopolitical risks, while silver offers growth potential due to rising industrial demand and relatively limited supply.
Historically, a 50:50 allocation to these metals has provided diversification benefits, and in some years, outperformed the Nifty 500 TRI.
The Kotak Gold Silver Passive FoF is structured to provide investors with cost-effective access to both metals, combining professional management, tax efficiency, and diversification within a single fund.
The allocation between gold and silver is adjusted periodically to reflect market trends and price movements.