With the RBI infusing Rs 7.5 lakh crore in liquidity -- and possibly more in the future -- the short- to medium-term corporate bond market is expected to benefit.
'Investors' decisions should reflect their financial goals, risk tolerance, and the amount of gold already present in their portfolio.'
'By investing in a basket of funds, FoFs can help minimise the impact of underperforming funds, thus reducing overall investment risk.'
All investors should ideally have a 10 to 15 per cent allocation to gold. Whether they invest in gold ETFs or SGBs should depend on their investment horizon.
'If their allocation to certain segments have become high due to strong returns over the past three-four years, they should rebalance their portfolios and bring them in line with their long-term asset allocation.'
Gold is an excellent asset class for diversification and should be included in all long-term portfolios.
The mutual fund (MF) industry had an action-packed 2023 as it tackled the scrapping of tax benefits for debt fund investors and surging flows into equity funds.
'It makes sense to have gold in one's portfolio keeping the political and economic risks of 2024 in mind.'
'If rate cuts happen, bond yields will come down and investors will make mark-to-market capital gains on them.'
'Gold prices thrive on volatility and more so when the stock markets trend downward.'
'They can transition from short to long-duration funds when the yield curve normalises.'
Given the prevailing uncertainties, investors must maintain a 10-15 per cent allocation to gold in 2023.
Despite its recent underperformance, gold must be a part of your portfolio.
While mid-cap and small-cap funds have given category average returns of 73.3 per cent and 89.8 per cent respectively over the past year, large-cap funds' returns have been lower at 53.9 per cent, points out Sarbajeet K Sen.
If bank and service provider are not compliant, pay manually, or give standing instruction linked to bank a/c, suggests Bindisha Sarang.
'Gold could benefit from the resulting risk aversion, as happened last year.'
'Avoid going overweight on gold. But maintain a 10 per cent allocation via sovereign gold bonds,' Bajaj Capital MD Sanjiv Bajaj tells Sarbajeet K Sen.
Stick to low-cost ULIPs launched in the past few years. Go with an insurer with a good investment team and solid track record of long-term returns, suggests Sanjay Kumar Singh.
Financial planners advise against putting capital to work by anticipating what might go up or down.
Investors should allocate 10 to 15 per cent in their portfolios to gold through sovereign gold bonds.
Move 10 per cent of your portfolio to the yellow metal.
If you missed the primary market bus but still want to invest in Sovereign Gold Bonds, then feel lucky.
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