Category Management: Saving money is not a concept that comes naturally to people – but enough time to identify their finances, organize spending, and prepare a budget after managing debts is a great way for them to achieve their long-term financial goals. There is a great possibility to do so. However, to achieve one’s short-term to long-term goals, experts often recommend investors to have a diversified portfolio. While diversifying their portfolio, people allocate funds in debt and equities based on their risk appetite. However, when it comes to exposure to gold, it becomes very difficult as the investment has the potential to beat inflation and debt instruments in the long run, but it gives lower returns than equities.
Batting for a diversified portfolio, Palka Arora Chopra, Senior Vice President, Master Trust said, “As rightly said, don’t put all your eggs in one basket, one should diversify their investments, There is a kind of exposure. Wealth is limited. It is important not to be imprisoned by a lifestyle one cannot afford and spend wisely.”
Advising investors to take gold investment seriously, Pankaj Mathpal, MD & CEO, Optima Money Managers said, “During asset allocation Category Management, it has been found that people look at equity and debt risk on the basis of their risk appetite whereas they ignore gold, which is wrong. He advised the investors to take gold as an investment option and make proper allocation of gold in their portfolio also.”
On how much gold one should have in one’s portfolio, Vineet Khandare, CEO and Founder, MyFundBazaar, said, “Allocating 10-15% of your portfolio to gold is inversely correlated with the stock market, which is great during economic downturns. Gives returns – be it a systematic investment plan or through a SIP one’s investment in Gold ETFs gives staggering returns.”
Vineet Khandare of MyFundBazaar further said that gold that has existed for centuries has seen a boom – from physical gold in the form of jewellery, coins and bars to digital gold in the form of god-based funds and ETFs – the most preferred asset for investors. square.
Vineet Khandare said, “With proper allocation to investments that act as a hedge against geo-political risks, gold will be beneficial in your portfolio over the long term as compared to trade-ins and trade-outs of investments. “
Pankaj Mathpal of Optima Money Managers, when asked about the returns from investing in gold over the long term, said, “In the long term, gold debt fund outperforms the returns and if one invests in gold for 15 years or more. It can be expected to get at least double digit growth after 15 or more years of investment.” Pankaj Mathpal also said that if an investor has low risk appetite, then in that case he should invest 15 percent in gold, while in case of high risk he should invest 10 percent of his portfolio in gold. Allocate the remaining 5 per cent in equities as equities give around 15 per cent returns after a time horizon of 15 or more years.
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