Radhika Gupta, MD & CEO of Edelweiss Mutual Fund, believes that silver has become a mainstream investment option in 2025, similar to the enthusiasm for small-cap equities in the previous market cycle. She notes that silver has transitioned from a niche investment to a core component of investor portfolios, with Edelweiss Mutual Fund seeing significant traction in its commodity funds, particularly silver. The asset manager, which has around ₹1,65,000 crore in assets under management, has seen a sharp increase in investor interest in silver, with daily collections of ₹10-20 crore, compared to struggling to collect ₹20 crore in a new fund offer just three years ago.
Gupta attributes the growing appeal of silver to its dual role as a precious metal and an industrial commodity, which provides a hedge against inflation and market volatility. Edelweiss was the first to package gold and silver together in a blended structure, which has proven to be a powerful combination. The 50:50 gold and silver blend offers a stable and volatile component, similar to large-cap and mid-cap equities.
The momentum in commodities is also coinciding with Edelweiss Mutual Fund’s expansion into global investing through GIFT City. The asset manager has established a presence in GIFT City and is launching international products aimed at domestic and NRI investors seeking offshore exposure. The platform allows investors to participate in global markets without being constrained by domestic mutual fund overseas investment limits. Edelweiss has already launched an India-focused multi-manager strategy from GIFT City and is expanding its international fund lineup, including a Greater China equity fund.
The Greater China equity fund enables investors to access Chinese and broader regional equities via the Liberalised Remittance Scheme (LRS) route, addressing strong investor demand amid existing regulatory caps on overseas investments. The fund feeds into the same underlying portfolio as its domestic China offering, providing investors with a convenient and regulated way to access international markets. Overall, Edelweiss Mutual Fund is well-positioned to capitalize on the growing demand for commodities and international investments, with its innovative products and strategic expansion into GIFT City.