Synopsis: Gold and silver funds have delivered exceptional returns of up to 117% in the past year, led by strong global demand and safe-haven buying. With Edelweiss and Motilal Oswal leading the category, investors are now assessing whether this momentum is sustainable or nearing a peak.
Gold and silver mutual funds are pulling in fresh attention from investors because precious metal prices are continuing their rally across the world. Edelweiss Gold & Silver ETF FoF and Motilal Oswal Gold and Silver Passive FoF have strong performance during the last year, and they have also clearly outperformed the category returns. Gold is still being lifted by safe-haven demand, whereas silver is getting extra traction from growing industrial intake and also clean energy-linked consumption.
1. Edelweiss Gold & Silver ETF FoF
- NAV: ₹37.03
- AUM: ₹2,945.86 Cr
- Expense Ratio: 0.20%
- Exit Load: 1% (within 15 days)
- Performance Snapshot
- 1-Year Return: 117.5%
- 3-Year CAGR: 43.8%
- 1-Year Absolute Return: 117.5%
- 3-Year Absolute Return: 197.7%
- Category Comparison (1-Year)
- Fund 1-Year Return: 117.5%
- Equity international Category Average: 76%
- Outperformance: +41.5 percentage points
2. Motilal Oswal Gold and Silver Passive FoF
- NAV: ₹33.11
- AUM: ₹2,652.42 Cr
- Expense Ratio: 0.23%
- Exit Load: NIL
- Performance Snapshot
- 1-Year Return: 93.8%
- 3-Year CAGR: 39.7%
- 1-Year Absolute Return: 93.8%
- 3-Year Absolute Return: 173.0%
- Category Comparison (1-Year)
- Fund 1-Year Return: 93.8%
- Equity international Category Average: 76%
- Outperformance: +17.8 percentage points
Edelweiss vs Motilal Oswal: Key Comparison
Note: NAV, AUM, expense ratio, and other fund details are sourced from Groww as of May 15, 2026.
Why are Gold and Silver on an Uptrend?
Gold prices have gained support due to the rise in uncertainties, inflation fears, geopolitical concerns, and central banks’ purchases. Gold remains an investor favorite asset in times of market and economic instability. Silver is gaining strength owing to the increase in investments and applications. Silver is being used increasingly in solar panel production, electric vehicles, semiconductors, and other electronic devices.
Reasons Why Investors should Consider Investing in These Funds Now?
- Gold and silver funds can play a diversification role in portfolios, especially for investors looking for a hedge against inflation and stable investments during difficult times.
- The funds could also bring down the portfolio volatility while giving exposure to worldwide commodity trends.
- A high-risk investor would invest in funds with more silver weightage, while conservative investors would go for a gold and silver fund with balanced weightage.
- SIP investment would prove better than a one-time investment after a sudden surge in prices.
Risks Investors Should Know
- Sharp corrections after extended commodity rallies
- Silver remains significantly more volatile than gold
- Macroeconomic shifts can rapidly reverse price trends
- Rising US interest rates may reduce demand for non-yielding assets
- No fixed income or cash flow generation
- Excessive allocation may weaken portfolio diversification
- Short-term returns can remain highly unpredictable
Conclusion
Gold and silver funds have provided excellent gains due to robust metal performance and increasing interest from investors. Nevertheless, it is advisable for investors to view these funds as for long-term investment and portfolio diversification, ideally via staggered investment plans such as SIPs.
Written By Ameet S
Disclaimer: The information provided in this article is for educational purposes only and should not be construed as financial advice or investment recommendation. Returns mentioned are based on historical performance and may not be sustained in the future. Mutual fund investments are subject to market risks, including potential loss of capital. Investors are advised to assess their risk appetite and financial goals and to consult a certified financial advisor before investing.
