Funds that have quietly cashed in on the gold & silver rush

Summary: While you were watching equity markets, some mutual funds quietly rode a gold and silver rally. And they weren’t gold or silver funds only. These hybrid funds, by design, had an edge. So, let’s find out which hybrid funds have quietly and confidently rode the gold and silver wave. Gold and silver aren’t just heirloom items anymore. In recent years, they have been giving India’s small- and mid-cap funds a run for their money. In the last three years, gold funds have delivered 23.1 per cent, while silver funds have shone brighter with 26.2 per cent returns. That’s almost in the same league as small-cap funds (23.76 per cent) and mid-cap funds (23.19 per cent). But there’s another category that quietly capitalised on this commodities boom: multi-asset allocation funds (MAAFs). What are MAAFs? Multi-asset allocation funds (MAAFs) are a type of hybrid mutual fund that must invest in at least three different asset classes, like equity, debt, real estate and commodities like gold or silver. Unlike traditional hybrid funds that invest in stocks and debt, MAAFs are mandated by SEBI to hold at least 10 per cent in three asset classes. It’s this added flexibility — especially the ability to invest meaningfully in commodities — that has given MAAFs a distinct edge in the last three years. With gold and silver delivering stellar returns over the past three years, it’s only natural to expect that MAAFs with higher commodity exposure would have quietly benefited from the rally. But did they? Let&r