Axis Gold and Silver Passive FOF — Detailed Review & Analysis

Axis Gold and Silver Passive FOF — Detailed Review & Analysis

Home » Blog » Axis Gold and Silver Passive FOF

Estimated reading time: 8 minutes

Axis Gold and Silver Passive FOF

Axis Gold and Silver Passive Fund of Fund (FoF) is a unique commodity-based investment option that allows investors to gain dual exposure to both gold and silver through a single mutual fund. Launched by Axis Mutual Fund, this scheme invests primarily in Gold ETFs and Silver ETFs, offering a balanced mix of two time-tested precious metals known for their hedging ability, diversification benefits, and long-term wealth protection characteristics.

What is Gold and Silver Passive FOF?

A Gold and Silver Passive Fund of Fund (FoF) is a mutual fund that does not
invest directly in gold or silver, but instead invests in Gold ETFs and Silver ETFs.
This means the fund passively tracks the domestic prices of gold and silver
through these ETFs, giving investors exposure to both precious metals in a single, convenient scheme.

Because it is a Fund of Fund:

  1. You don’t need a demat account (unlike ETFs).
  2. You can invest small amounts through SIP or lumpsum.
  3. You get automatic rebalancing between gold and silver handled by the fund manager.

In short, a Gold and Silver Passive FoF is an easy way for investors to participate in the performance of both gold and silver, without the hassles of buying, storing, or managing physical metals or ETF units.

Quick Snapshot

ParameterDetails
Scheme NameAxis Gold and Silver Passive FoF
CategoryCommodity-Based Fund of Funds (Domestic)
TypeOpen-ended FoF investing in Gold & Silver ETFs
Investment ObjectiveTo generate returns by investing in units of Gold ETFs & Silver ETFs
BenchmarkDomestic Price of Gold & Domestic Price of Silver (50:50)
Minimum Investment₹100 (NFO & ongoing)
OptionGrowth
Exit Load0.25% if redeemed within 15 days; Nil thereafter
NFO OpensDecember 10, 2025
NFO ClosesDecember 22, 2025
Re-opens for PurchaseWithin 5 business days of allotment
Asset Allocation95–100% in Gold & Silver ETFs; 0–5% in Money Market Instruments
Eligible InvestorsAll investors allowed under SID

The investment objective of Axis Gold and Silver Passive FoF is:

To generate returns by investing in units of Gold ETFs and Silver ETFs. However, the performance of the scheme may differ from that of the underlying ETFs due to tracking error.

Benchmark Details

The scheme’s benchmark is:

→ Domestic Price of Gold and Domestic Price of Silver (50:50 weightage)

Why this benchmark?
Because the fund’s performance is directly tied to returns of Gold & Silver ETFs which track domestic prices.

Way forward – Gold & Silver

Positives

  1. Geopolitical risk
  2. Strong buying by global central banks
  3. Fed Policy (rate cuts) and Inflation
  4. Increasing demand from investors
  5. Weak dollar (de-dollarization)
Axis Gold and Silver Passive FOF

Negatives

  1. Profit booking post recent rally
  2. Signs of easing geopolitical tensions
  3. Fed Rate cuts – a potential pause
  4. Faster global growth may shift focus to
    equities

Positives

  1. Renewable energy & EV sector demand
  2. Increasing use of silver in electronics and semiconductor
  3. USA – silver is critical mineral
  4. Relatively less elastic supply
  5. Increasing demand from investors
Axis Gold and Silver Passive FOF

Negatives

  1. Perception of overvaluations
  2. Potentially weaker physical demand at
    elevated prices
  3. Future increase in supply
  4. Silver seen as tactical, instead of long-term bet

Takeaways for combining gold & silver

Gold’s qualities—including its role as a store of value, status as a safe haven, broad appeal, and low correlation with equities and bonds make it a compelling addition to a well-diversified investment portfolio.

Traditionally regarded as an industrial commodity, silver’s recent increase in demand driven by solar energy, electric vehicles, and various electronics presents promising opportunities for capital appreciation.

Although both gold and silver offer distinct advantages for inclusion in a portfolio, determining the appropriate allocation can be complex for investors and advisors due to the various factors influencing their price performance.

Historically, incorporating a combination of gold and silver alongside traditional equity and debt portfolios has demonstrated enhanced risk adjusted returns for investors.

Gold and Silver tends to get affected on account of various macro and fundamental factors; and timing allocation between gold and silver can be challenging. Axis Gold and Silver Passive FoF can offer a excellent solution that has fund manager making allocation decisions for investors

Why Invest in Axis Gold and Silver Passive FOF?

1. Dual Precious Metal Exposure
Instead of choosing between gold and silver, investors
get a balanced 50:50 exposure through underlying ETFs.

2. Hedge Against Volatility & Inflation
Both metals behave differently in various economic cycles,
offering diversification and inflation hedging.

3. Liquidity Convenience
Redemption and purchases allowed on any
business day; proceeds within 3 working days.

4. Low Minimum Investment
Invest from as low as ₹100, making it accessible
to all investor types.

5. Professional ETF Rebalancing
The fund manager adjusts allocation using
macro/technical/fundamental indicators.

🔗 How to Invest Online?

You can easily invest through our online investment platform.

Dealing with the Pain Points of Investors

Pain PointShort ExplanationSolution Provided by the Scheme
Returns may differ from gold/silver pricesTracking error can cause deviations.AMC monitors and minimizes tracking error.
ETF liquidity issuesETFs may trade at premium/discount.FoF structure avoids exchange-based liquidity risk.
Commodity price volatilityGold & silver fluctuate sharply.Dual exposure balances risk between both metals.
Challenges of physical storageStorage, safety, and purity issues.Stored securely with insured custodians.
High ETF lot size requirementETFs need creation unit purchases.FoF allows investing from just ₹100.
Tax confusionMany assume gold funds = equity tax.Clarified debt-style taxation for FoF.

Axis Gold and Silver Passive FOF

Kotak Gold Silver Passive FOF
Q1: What type of fund is Axis Gold and Silver Passive FoF?

A1: A commodity-based Fund of Fund investing predominantly in Gold & Silver ETFs.

Q2: What is the minimum investment?

A2: ₹100 during NFO and thereafter.

Q3: Is there an exit load?

A3: Yes— 0.25% if redeemed within 15 days; Zero after 15 days

Q4: Can I invest via SIP?

A4: Yes. Daily, weekly, monthly, and yearly SIP options are available with minimum ₹100.

Q5: Does the scheme invest outside India?

A5: No. It does not invest in overseas securities.

Kotak Gold Silver Passive FOF

Axis Gold and Silver Passive FOF is a unique offering designed to provide diversified exposure to precious metals through a regulated and low-cost structure. It suits investors seeking inflation protection, long-term hedging, and asset diversification without directly handling gold/silver.

Disclaimer:- Mutual Fund investments are subject to market risks, please read scheme related documents carefully before investing.

📅 Last Updated on: January 12, 2026

  • Sushil Bajaj
  • December 11, 2025

More Insights

  • 22 December 2025 |
  • By Sushil Bajaj

ICICI Pru Multi-Asset Fund Review: What the Numbers Say About Risk & Returns

Mutual Fund Portfolio Analysis Overview Returns Allocation Risk Quants Peers Goal Planner FAQ WhatsApp Loading… Introduction … Latest NAV — AUM (Cr) — Fund Manager — Inception Date — 52W High / Low — AI Analysis Snapshot Performance Analysis Short Term Returns Long Term Returns Asset Allocation Category Exposure (%) Project Fund Returns Why SIP […]

  • 17 December 2025 |
  • By Sushil Bajaj

360 ONE ELSS Tax Saver Nifty 50 Index Fund: Detailed Analysis, Returns & Suitability

Mutual Fund Portfolio Analysis Overview Returns Allocation Risk Quants Peers Goal Planner FAQ WhatsApp AI Analysis Snapshot Loading… Introduction … Performance Analysis Short Term Returns Long Term Returns Asset Allocation Category Exposure (%) Project Fund Returns Why SIP works: Benefits from rupee cost averaging Harnesses power of compounding over long term Reduces impact of market […]

  • 17 February 2026 |
  • By Sushil Bajaj

LIC MF Technology Fund NFO: Ride the Next Wave of Digital Growth

LIC MF Technology Fund NFO – Invest in Future of Tech Overview Strategy Portfolio Performance FAQs Invest Now LIC MF Technology Fund Drive growth through digital transformation. The LIC MF Technology Fund is a thematic equity scheme designed to capture long-term capital appreciation by investing in high-potential technology-driven businesses and digital infrastructure leaders. “` Fund […]

  • 13 February 2026 |
  • By Sushil Bajaj

Invest in Old Bridge Flexi Cap Fund NFO (Feb 2026): Dynamic Growth Across All Caps

Old Bridge Flexi Cap Fund NFO – Invest Online | Nivesh Sansar Overview Strategy Portfolio Performance FAQs Invest Now Old Bridge Flexi Cap Fund The Old Bridge Flexi Cap Fund is a dynamic equity scheme designed to capture growth opportunities across large, mid, and small-cap segments. By leveraging market cycles and valuation-driven strategies, it aims […]