Gold is inching higher and investors wonder if it will outperform other asset classes. Advait Dharmadhikari explains why the outlook for gold in 2019 remains positive!
While most of the investors were focused on equity markets and the political events in India that may impact equity returns, one asset class that is widely held by Indians managed to show an impressive performance without making a lot of noise.
Gold is up by 7.3 per cent in CY18 and is up by 1.82 per cent on YTD basis in 2019. Gold outperformed equity yet again in 2018 as it did in 2008, 2010, 2011 and 2016.
Time and again the importance of asset allocation is discussed in financial literature. It is a known fact that the amount of wealth that any investor would generate is a byproduct of asset allocation in the long term. The outperformance of gold in 2018 shows the importance of being invested in the asset class. Indeed, for any investor, getting the asset allocation right is not only essential, but also the key to minimizing risks in investments. Smart investors have been taking exposure in the precious metal not expecting superior returns alone. The intention is to create a portfolio that delivers on a risk-adjusted basis. Gold can be an essential component of any portfolio that needs to deliver returns on a risk-adjusted basis. Says Sachin Surse, a seasoned investor, “ I always believed in asset allocation strategy and have focused on getting it right from the beginning. At any given point of time, I am invested in gold, equity, real estate and debt. After equity, if there is any other asset class that I am happy with, it is gold, as it has not disappointed me in terms of returns. And yes, it gives me the much-needed diversification in the overall portfolio and the best part about gold is its liquidity.”
Domestic vs international gold prices and exchange rates
This story is from the March 18, 2019 edition of Dalal Street Investment Journal.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 8,500+ magazines and newspapers.
Already a subscriber ? Sign In
This story is from the March 18, 2019 edition of Dalal Street Investment Journal.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 8,500+ magazines and newspapers.
Already a subscriber? Sign In
All That Shines is Gold & Silver
Precious metals gold and silver hold a special place when it comes to the investment journey of Indians. They help diversify investment risks and provide a hedge against market volatility, making them an essential component of a well-rounded investment strategy. Vaishnavi Chauhan explores the impact of precious metals on your portfolio.
All You Wanted To Know About SIP
Is rupee cost averaging effective across all market phases, including uptrends, consolidations and downtrends? You probably might not have observed its performance in each phase or may have exited investments upon seeing negative returns. Rakesh Deshmukh takes a closer look at the scenario
When Is The Right Time To Sell Mutual Funds?
Imagine this scenario: You have diligently crafted your mutual fund portfolio, aligning each investment with your financial objectives and risk tolerance. All seems well until one day the market takes a steep dive, injecting uncertainty into your investment journey.
Middle East Tension Disrupt Global Equities
In the past fortnight, global stock markets experienced a rollercoaster ride, due to continued inflation concerns and escalating tensions in the Middle East. This confluence of events triggered a flight to safety, pushing investors towards safety assets
Gold and Oil Stay Solid Amid Escalating Geopolitical Issue
A boom in select commodities has threatened the central banks' inflation fight and interest rate cuts and now the gloves are coming off for them as they try to tame inflation
India - A Cure For Pharma Outsourcing Woes?
Eroom's Law, the grim corollary to Moore's Law, paints a concerning picture for the pharmaceutical industry.
Infrastructure Sector Is It Reaching For The Skies?
With the upcoming Lok Sabha elections looming, many of us may be feeling the urge to invest in infrastructure stocks, hoping for a favourable impact on investments if a strong political mandate ensues. Mandar Wagh delves into the government's emphasis on infrastructural development, future growth triggers and the critical factor of fundamentals that must be taken into consideration before investing
STABILITY ROCKED BY COMPETITION
While the company’s product portfolio and availability through various retail channels is undoubtedly impressive, the increasing competition posed by start-ups in the organised sector and the tendency of young consumers to try out various brands instead of displaying single brand loyalty is an issue of concern when it comes to future growth prospects
Launches A Wide Range Of Air-Conditioners
A leading name in the consumer electronics industry known for its innovative and cutting-edge technology, Cellecor Gadgets Limited is now stepping into the domain of air-conditioners, all set to make them available across India starting this month
Domestic Markets Spin Into A Higher Orbit
The domestic market experienced a period of volatile trading sessions over the last two weeks, predominantly characterised by upward momentum. According to data released by the Ministry of Commerce and Industry, the index of eight core industries for February 2024 showed a growth of 6.7 per cent, an increase from 4.1 per cent in January 2024.
