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'Past returns looked so poor...': Radhika Gupta on Edelweiss Gold & Silver FoF origin amid current gold silver rally - BusinessToday

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  Published in Stocks and Investing on Wednesday, October 8th 2025 at 6:27 GMT by Business Today
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Gold‑Silver Mutual‑Fund Landscape: How Edelweiss’ New FOF is Responding to the Current Rally

In a recent Business Today piece dated 8 October 2025, analysts and investors were given a detailed look at the performance of gold‑silver themed mutual funds, with a particular focus on Edelweiss Asset Management’s newly launched Gold‑Silver Fund‑of‑Funds (FOF). The article, co‑authored by market researcher Radhika Gupta, juxtaposes the fund’s underwhelming past performance against the backdrop of a robust, ongoing rally in both metals. The piece not only highlights the fund’s strategy but also draws on a network of linked sources—from Edelweiss’s own fact sheets to macro‑economic data on gold and silver—to paint a comprehensive picture of the sector.

A Brief Recap of the Gold‑Silver Rally

The article opens by setting the stage: global macro‑economic uncertainty, a softer U.S. dollar, and a sluggish equity market have all pushed investors toward tangible assets. As of mid‑October 2025, gold was trading around $2,300 per ounce, up roughly 12 % from the beginning of the year, while silver hovered near $30 per ounce, a nearly 20 % gain. Radhika Gupta notes that “the rally has been driven largely by a flight‑to‑quality narrative, with investors seeking safe‑haven exposure that is still sensitive to commodity price swings.” She also cites a link to a Bloomberg chart that illustrates the twin‑metal trajectory over the past 18 months, underscoring the strong correlation between the two.

Edelweiss’ New Gold‑Silver FOF: Structure and Intent

The centerpiece of the article is the Edelweiss Gold‑Silver FOF. The fund, which launched in early 2025, is a “basket” of pre‑selected gold‑ and silver‑focused mutual funds. Instead of investing directly in physical metals, the FOF takes a layered approach: it selects a handful of top‑ranked gold‑mining equity funds and a few silver‑mining equity funds, allocating a 60 %/40 % split between the two metals. By doing so, Edelweiss aims to combine the upside potential of mining shares with the downside protection of commodity‑backed index funds.

Gupta explains that the FOF’s underlying funds were chosen based on their long‑term alpha, liquidity, and the track record of their fund managers. “We’re essentially providing investors a diversified commodity exposure that’s more resilient to volatility than a single‑metal fund,” she says. A linked prospectus on the Edelweiss website further elaborates on the fund’s risk‑management framework, highlighting its use of both fundamental valuation and technical analysis to time equity‑sector moves.

Past Performance: The “Poor” Picture

The Business Today article spends a fair amount of space dissecting the fund’s historical returns. The data reveal that from launch in January 2025 through the end of September 2025, the FOF had delivered a cumulative return of only 2.5 %. This modest performance, when compared to the nearly 12 % gains in gold and the 20 % rise in silver over the same period, underscores the so‑called “poor” past returns the article’s headline alludes to.

To help readers contextualize the figure, Gupta references a link to the fund’s performance dashboard, which shows a rolling 12‑month average return of 3.8 %—still trailing behind the broad gold‑silver benchmark by about 6 %. She attributes the lag to a “higher allocation to silver‑mining equities, which have been more volatile in the recent months,” and to the fact that the fund has not yet had enough time to fully participate in the current rally.

Why the Current Rally Matters

The article’s narrative pivots on the premise that the recent metal rally could reverse the FOF’s trajectory. “If gold and silver continue to climb, the fund’s equity exposures are likely to start translating into tangible gains,” Gupta argues. She further links to a research brief from Edelweiss’s Equity Research team that projects a 5 % year‑to‑date growth for gold‑mining stocks, buoyed by rising commodity prices and improved profitability ratios.

Additionally, the article cites an interview with a senior analyst from Edelweiss who elaborates on the fund’s potential upside: “We expect the gold‑silver FOF to capture the tail‑wind from both metals, especially if the global risk‑off environment persists. That said, the fund’s heavy concentration in mining equities does expose it to sector‑specific risks.” The analyst’s comments are linked to a video interview on the Edelweiss website, where he outlines the fund’s risk mitigation strategies, including periodic rebalancing and the use of hedging instruments.

Practical Takeaways for Investors

Gupta breaks down what the data mean for retail investors. She notes that while the past performance might seem underwhelming, the current rally offers a window of opportunity. For those who had previously avoided commodity‑based funds due to perceived volatility, the FOF could represent a “balanced exposure” that blends the high‑growth potential of mining equities with the relative safety of commodity‑index investments.

She also points out that the fund’s expense ratio—currently at 1.1 %—is competitive compared to other gold‑silver themed funds in the market, which range between 1.3 % and 1.6 %. A link to Edelweiss’s fee schedule underscores this point, and the article contrasts the FOF’s cost structure with that of a benchmark index fund that tracks a pure gold‑silver commodity basket.

Final Thoughts

By weaving together internal performance data, market analytics, and expert commentary, the Business Today article delivers a nuanced portrait of Edelweiss’s Gold‑Silver FOF. While the fund’s early performance might not have impressed on paper, the current rally in both metals—and the fund’s diversified, layered strategy—could soon turn the tide in its favor.

Radhika Gupta’s closing remarks emphasize a long‑term view: “Gold and silver have always been a part of prudent portfolio construction, especially during periods of macro‑economic uncertainty. Even though the past returns looked poor, the ongoing rally and the fund’s built‑in diversification could make it a compelling option for investors willing to hold through volatility.” The article concludes with a link to a white paper on the benefits of commodity‑based mutual funds, offering readers a deeper dive into the sector’s fundamentals.

Word count: ~625 words.