Mumbai, Aug 24 (IANS): Edelweiss Asset Management Ltd has launched 'Edelweiss Gold and Silver ETF Fund of Fund', which will open for subscription today and closes on September 7.

"Edelweiss Gold and Silver ETF Fund of Fund is suitable for investors seeking to invest in asset classes that can aid portfolios during the downturn. It can help investors offset the volatility in their equity portfolios. Both metals have underperformed in recent times and the dollar index, which has an inverse correlation with gold and silver, may weaken in the near term, hence, it could be a good time to invest in gold and silver at this point in time," said Radhika Gupta, MD & CEO Edelweiss Asset Management Limited.

Gold and silver have proven to be popular investment tools in current times as they offer a hedge against inflation.

These precious metals also have a low correlation with equities and therefore offer you better diversification. Compared to physical gold and silver, the Mutual Fund structure offers greater convenience, affordability, and liquidity.

A mix of gold and silver is ideal as gold performs well during the recession while silver outperforms during precious metal bull rallies.

Both provide a good hedge against inflation in the long run and have low correlations with equities.