Kotak Mahindra AMC Unveils Gold-Silver Passive Fund of Fund, NFO Open Until October 20
Kotak Mahindra Asset Management Company introduces the Kotak Gold Silver Passive Fund of Fund, open for subscription until October 20. The fund invests in gold and silver through Kotak Gold ETF and Kotak Silver ETF, using dynamic allocation based on quantitative models. It offers cost-effective access to precious metals, professional management, potential tax efficiency, and portfolio diversification. The fund aims to capitalize on gold's role as an inflation hedge and silver's industrial growth potential.
*this image is generated using AI for illustrative purposes only.
Kotak Mahindra Asset Management Company (KMAMC) has introduced a new investment opportunity for precious metals enthusiasts. The company has launched the Kotak Gold Silver Passive Fund of Fund, with its New Fund Offer (NFO) open for subscription until October 20.
Key Features of the Fund
- Fund Type: Passive Fund of Fund
- Investment Focus: Gold and Silver
- Investment Method: Through Kotak Gold ETF and Kotak Silver ETF
- Allocation Strategy: Dynamic allocation using in-house quantitative models
- Adjustments: Periodic, based on market trends and price movements
Benefits for Investors
- Cost-Effective Access: The fund provides an economical way to invest in both gold and silver.
- Professional Management: Benefit from expert oversight of precious metals investments.
- Tax Efficiency: Potentially more tax-efficient compared to direct metal investments.
- Diversification: Offers portfolio diversification benefits.
Role of Gold and Silver in Investment Portfolios
Gold and silver have traditionally served as portfolio diversifiers due to their low correlation with equities. Here's how they contribute to a balanced investment strategy:
- Gold: Acts as a hedge against inflation and geopolitical risks.
- Silver: Offers growth potential from industrial demand.
Investment Rationale
The Kotak Gold Silver Passive Fund of Fund aims to capitalize on the unique properties of both metals:
- Portfolio Stability: The low correlation with equities can help stabilize overall portfolio performance.
- Inflation Protection: Particularly through gold's historical role as an inflation hedge.
- Growth Opportunity: Leveraging silver's industrial applications for potential growth.
This new offering from Kotak Mahindra AMC provides investors with a professionally managed, diversified approach to precious metals investing. As always, investors should consider their financial goals and risk tolerance before making investment decisions.
17
