Volume of fluid (VOF) is basically a marker method from the family of surface tracking methods and is desirable for simulating surface and interface position. So if we wish to simulate the surface or interface position it is a possible choice. But for the simulation of mixing, the Navier-Stokes equations and species concentration conservation equation need to be solved with an appropriate and suitable turbulence model no matter what the interface tracking method is. Majority of the CFD codes which use VOF method solve the complete set of the Navier-Stokes equations and may solve the species concentration equation as well.
Basically, the VOF method treats the fluids which are non-interpenetrating/non soluble into each other. However, you may think of providing artificial mass transfer at the interface of two fluids.
@sachin Yes, VOF method assumes two or more fluids are immiscible. So I have opted two phase one as air and another one as mixture (water+tracer). In transient solution, when tracer is supplied, it mixes only with the mixture. Thus condition of VOF model is maintained with internal mixing of fluid. I have got some good results.
Thanks for sharing your question! I am in the same situation where I want to do exactly what you have done. I was thinking of adding the same liquid material to my mixing tank, so it won't create separated surfaces. However, I am not sure how to track that, as it is the same material as phase 2 (water/mixture)