Gold & Net Zero Goal

Holding gold in a diversified portfolio can help reduce carbon footprint without sacrificing returns, writes V.P. Nandakumar, MD & CEO of Manappuram Finance Ltd

- Shri V.P. Nandakumar

Gold is slowly but steadily assuming a more important role in the myriad world of investment as the recent volatility in the financial markets across the globe has rendered many an investment style of the past redundant. A case in point is the fast-losing relevance of the 60:40 portfolio strategy – 60% in stocks and 40% in bonds – after the turbulence in the stock markets and ructions in the debt segment hit the investment world last year. Conventional investments strategy is under fresh tests after the major central banks across the world made a pivot to hawkish policy stance followed by aggressively hiking policy rates and flipping to monetary tightening in a bid to control inflation and ease price pressures. For instance, the Reserve Bank of India has so far delivered a cumulative 250 basis points (2.50%) increase in benchmark repo rate in the current policy cycle in this financial year to get the inflation back to its upper tolerance limit of 4%.

Shri V.P.Nandakumar, MD & CEO, Manappuram Finance Ltd.