Silver is today’s new small cap, says Edelweiss Mutual Fund MD & CEO Radhika Gupta

Radhika Gupta, MD & CEO, Edelweiss Mutual Fund
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According to Radhika Gupta, Managing Director and CEO of Edelweiss Mutual Fund, silver has entered mainstream investment portfolios in 2023, paralleling the enthusiasm previously seen for small-cap equities. “Silver is emerging as a focal point today, much as smallcaps dominated conversations in the recent past,” noted Gupta, highlighting the metal’s shift from a peripheral holding to a core asset.

Edelweiss Mutual Fund, overseeing approximately ₹1,65,000 crore across equity and fixed-income assets, reports growing traction for commodity funds—especially silver—alongside traditional investments. With holdings spanning 58 locations and nearly 30 lakh folios nationwide, the asset manager observes a marked increase in silver’s appeal. This contrasts sharply with initial hurdles, as Gupta remarked: “When we launched our silver fund three years ago, raising ₹20 crore via NFO was challenging. Today, we routinely see ₹10-20 crore daily inflows—evidence of this category maturing.”

While gold remains a classic portfolio hedge, silver’s dual role as a precious and industrial metal broadens its investor base. Edelweiss pioneered blending both metals in an equal-weighted structure. “By pairing 50% gold and 50% silver—an industry first—we merge stability with volatility. It mirrors the approach of combining large-cap and mid-cap equities,” Gupta explained during a recent visit to Gujarat’s GIFT City.

This commodity momentum aligns with Edelweiss’s expansion into global investments via GIFT City. The firm now offers international products catering to domestic and NRI investors, leveraging the hub’s regulatory framework to bypass domestic overseas investment limits. Current launches include an India-focused multi-manager strategy and a Greater China equity fund—accessible via the LRS route—that mirrors its domestic China offering. This addresses robust demand amid regulatory constraints on foreign allocations.

Published on December 19, 2023