CRYSTAL BALL GAZING ACROSS ASSET CLASSES

T is not as much the stocks or mutual fund schemes one selects as much as it is the right asset allocation for a given period that contributes to wealth creation for an investor.

- ASHOK KUMAR Head of LKW-India. He can be reached at [e-mail] (Views expressed here are personal)

In the light of this market belief, let us proceed to cast a glance across asset classes as they stand at this point in time.

A popular sub-asset class in India is Gold. With gold prices rising to new highs, there are concerns of it entering a price bubble territory. However, the ongoing hostilities in some parts of the world as well as aggressive posturing by nations with powerful armies, ensures that gold as the asset class of last recourse remains in demand. There is still some smart money accumulating the yellow metal in its more liquid investment forms via Exchange Traded Funds (ETFs) as well as the Mutual Fund route. It continues to remain a hedge alongside large equity holdings to cushion portfolios in the event of a vertical fall in equities.