
Should you buy gold this Akshaya Tritiya? Avoid investing in gold purely based on its recent performance - here's why
Gold's ability to deliver high long-term returns significantly declines over time. (AI image)
By Chethan Shenoy
Gold buying on Akshaya Tritiya
: Traditionally, Gold has always been considered a safe haven asset for investors, offering protection during times of uncertainty. But it is important to understand that it a sentiment driven asset.
The price of gold is not driven by underlying fundamental metrics, but by demand and supply.
Gold has a tendency to perform in cycles and its recent performance has come in the last 5 years due to global uncertainty, rising inflation, geopolitical tensions, and strong central bank demand. Investors tend to purchase based on recent performance, exhibiting recency bias, which often leads them to buy at the peak.
They should avoid investing in Gold purely based on its recent performance.
We analysed the different probabilities of CAGR of Nifty vs. Gold over different time frames:
Probability of Return
5 year
7 year
10 year
15 year
Nifty
>10%
66.05%
62.48%
62.17%
63.18%
>12%
41.81%
34.34%
38.07%
23.74%
Gold
>10%
49.73%
29.16%
13.53%
60.38%
>12%
38.05%
16.92%
0.58%
0.00%
Gold's ability to deliver high long-term returns significantly declines over time. The chance of earning over 12% CAGR from gold is just 0.58% over 10 years and drops to 0% over 15 years. Despite similar volatility to equity, its long-term upside is limited, making it less rewarding on a risk-adjusted basis.
In comparison, Nifty delivers more than 12% CAGR in 38% of 10-year cases and 24% of 15-year cases, making it a more dependable choice.
by Taboola
by Taboola
Sponsored Links
Sponsored Links
Promoted Links
Promoted Links
You May Like
Google Brain Co-Founder Andrew Ng, Recommends: Read These 5 Books And Turn Your Life Around
Blinkist: Andrew Ng's Reading List
Undo
It is far more consistent across 5, 7, 10, and 15 years.
Also Read |
India has the world's 7th highest gold reserves! Why is RBI buying gold and how does it help the Indian economy?
When considering long-term wealth creation, Nifty maintains a much stronger probability of beating inflation and compounding wealth versus Gold, which becomes highly unreliable over time.
Therefore, while gold can help hedge risks, over-reliance may limit growth. We recommend a portfolio with 80:20 in equity to debt.
Thus, investing in Gold this
Akshaya Tritya
is not recommended. If you still wish to invest in gold, invest only via
Gold ETFs
, and not FoFs or any other mode, and keep exposure to 5-10% of your total portfolio.
(Chethan Shenoy is Executive Director & Head - Product & Research, Anand Rathi Wealth Limited)
Stay informed with the latest
business
news, updates on
bank holidays
and
public holidays
.
Master Value & Valuation with ET! Learn to invest smartly & decode financials. Limited seats at 33% off – Enroll now!

Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles


Time of India
26 minutes ago
- Time of India
What went wrong with Siri: Apple's Craig Federighi and Greg Joswiak explain why the ‘new' Siri ‘just don't work' like an Apple product
Apple's software chief Craig Federighi has offered the most detailed explanation yet for why the company's highly anticipated AI-powered Siri features, first promised at WWDC 2024, have been delayed until 2026. In a series of post-keynote interviews, Federighi admitted that Apple's initial approach "just doesn't work reliably enough to be an Apple product." The delay represents a rare misstep for Apple, which typically avoids demonstrating features it cannot deliver on schedule. Federighi revealed that while Apple had working prototypes of the enhanced Siri capabilities, including personal context awareness and cross-app functionality, the features only performed correctly about two-thirds of the time. "This just doesn't work reliably enough to be an Apple product," Federighi told The Wall Street Journal, providing his most candid assessment of the situation. In the same WSJ interview, he reiterated the technical challenges: "We found that when we were developing this feature that we had, really, two phases, two versions of the ultimate architecture that we were going to create." Speaking to TechRadar and Tom's Guide in a joint podcast interview, Federighi expanded on the architectural problems: "We realized that V1 architecture, we could push and push and put in more time, but if we tried to push that out in the state it was going to be in, it would not meet our customer expectations or Apple standards." by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Trade Bitcoin & Ethereum – No Wallet Needed! IC Markets Start Now Undo Apple's quality standards override deadlines The admission marks an unusual moment of transparency from Apple, which has faced mounting pressure to compete with AI-powered assistants from Google and OpenAI . Federighi stressed that the company prioritized product quality over meeting artificial deadlines, even as competitors advance their AI capabilities. "Look, we don't want to disappoint customers," said Greg Joswiak , Apple's marketing chief, in the Wall Street Journal interview. "We never do. But it would've been more disappointing to ship something that didn't hit our quality standard, that had an error rate that we felt was unacceptable. So we made what we thought was the best decision. I'd make it again." Federighi echoed this sentiment in his conversation with YouTuber iJustine , explaining: "What we said a while ago was that we were really working hard to get those [features] to come together. [We] had them working internally, but not working well enough." He emphasized the critical importance of reliability: "You know, when you have an experience like asking Siri to do something, either it becomes something you can depend on reliably, or it's something in the end you're not going to use." The delayed features were meant to transform Siri into a more capable assistant that could understand personal context, operate across multiple apps, and perform complex tasks based on on-screen content. Apple demonstrated these capabilities at WWDC 2024, showing Siri finding podcasts mentioned in messages and taking actions within apps using what Apple calls "app intents." However, Federighi revealed that Apple was simultaneously developing two different underlying architectures. While the company successfully demonstrated the "V1 architecture" at last year's conference, it became clear during development that this approach had fundamental limitations that prevented it from meeting Apple's reliability standards. "We were very focused on creating a broad platform for really integrated personal experiences into the OS," Federighi saud in the podcast, explaining Apple's original vision. But as development progressed, he noted: "We set about for months, making it work better and better across more app intents, better and better for doing search, but fundamentally, we found that the limitations of the V1 architecture weren't getting us to the quality level that we knew our customers needed and expected." In the Wall Street Journal interview, Federighi addressed why Apple, with all its resources, couldn't make the original approach work: "When it comes to automating capabilities on devices in a reliable way, no one's doing it really well right now. We wanted to be the first. We wanted to do it best." Two architectures, one solution "We set about for months, making it work better and better across more app intents, better and better for doing search," Federighi said. "But fundamentally, we found that the limitations of the V1 architecture weren't getting us to the quality level that we knew our customers needed and expected." The switch to what Federighi calls the "V2 architecture" effectively reset the development timeline. This deeper, more comprehensive approach extends across the entire Siri experience, building upon the work already completed rather than starting from scratch. "The V2 architecture is not, it wasn't a start-over," Federighi clarified in his TechRadar-Tom's Guide interview. "The V1 architecture was sort of half of the V2 architecture, and now we extend it across, sort of make it a pure architecture that extends across the entire Siri experience." During the company's spring assessment, Apple made the difficult decision to abandon the V1 approach. "As soon as we realized that, and that was during the spring, we let the world know that we weren't going to be able to put that out, and we were going to keep working on really shifting to the new architecture," Federighi told the podcast. Apple's different AI strategy Apple's approach differs significantly from competitors like OpenAI and Google, who have released chatbot-style AI assistants that users access through dedicated apps. Instead, Apple aims to integrate intelligence throughout its ecosystem, meeting users "where they are" rather than requiring them to navigate to a separate AI interface. "When we started with Apple Intelligence, we were very clear: this wasn't about just building a chatbot," Federighi emphasized in the podcast. The company's strategy remains focused on embedding AI capabilities directly into existing apps and workflows, rather than creating a standalone conversational assistant. Joswiak reinforced this philosophy in the same podcast discussion: "The features that you're seeing in Apple Intelligence isn't a destination for us. There's no app on intelligence. [It's about] making all the things you do every day better." Federighi acknowledged the appeal of conversational AI but maintained Apple's different focus: "I know a lot of people find it to be a really powerful way to gather their thoughts, brainstorm [...] So, sure, these are great things. Are they the most important thing for Apple to develop? Well, time will tell where we go there, but that's not the main thing we set out to do at this time." While Apple won't commit to a specific timeline for the enhanced Siri features, Federighi made clear the company won't repeat its premature announcement mistake. "We will announce the date when we're ready to seed it, and you're all ready to be able to experience it," he told the TechRadar-Tom's Guide podcast. Speaking with YouTuber iJustine, Federighi promised comprehensive delivery: "We really look forward to releasing everything we talked about in the past, and more. We don't really want to commit to that until we have it in hand." This suggests Apple may have additional Siri capabilities in development beyond what was originally demonstrated at WWDC 2024. AI Masterclass for Students. Upskill Young Ones Today!– Join Now


Time of India
27 minutes ago
- Time of India
ITR filing FY 2024-25: Several changes in Form 16! Top things salaried taxpayers shouldn't miss
ITR Filing: Under the new tax regime, standard deduction from salary has increased to Rs 75,000 from Rs 50,000. (AI image) ITR filing FY 2024-25: By June 15, 2025, employers must issue Form 16 to their salaried taxpayers for the fiscal year 2024-25. This year's Form 16 will have several modifications based on the amendments announced in the July 2024 Budget. Hence, it is important for taxpayers to take note of the changes in order to ensure error-free income tax e-filing. The last date to file Income Tax Return (ITR) for FY 2024-25 (AY 2025-26) has been extended this year from July 31 to September 15, 2025. Form 16 for ITR Filing : Top Changes Explained 1. Changes in Standard Deduction: This change is applicable only for individuals filing their income tax return under the new income tax regime. Under the new tax regime, standard deduction from salary has increased to Rs 75,000 from Rs 50,000, effective FY 2024-25. For employees who have selected the new tax regime in FY 2024-25 (AY 2025-26), Form 16 will reflect an enhanced Standard Deduction of Rs 75,000 when employers calculate TDS on salary. This aligns with the current income tax provisions for FY2024-25 under the new tax regime. It's important to note that should an individual decide to switch from new to old tax regime whilst filing ITR for FY 2024-25 (AY 2025-26), the standard deduction allowance from salary income will be limited to Rs 50,000. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Jeśli chcesz zabić czas przy komputerze, ta gra przygodowa jest koniecznością. Gra Przygodowa Dowiedz się więcej Undo Also Read | ITR Filing FY 2024-25: Have you got an Income Tax notice? Don't ignore it! Top types of tax notices & actions required 2. Taxes deducted from other incomes: Form 16 will display tax deductions from additional income sources and Tax Collected at Source (TCS) on particular expenditures. This inclusion applies when employees have submitted Form 12BBA to their employer, according to an ET report. Finance Minister Nirmala Sitharaman's Budget 2024 had seen revised income tax regulations, enabling salaried individuals to notify employers about TDS from other income sources and TCS from specific expenses. These amounts can be deducted from the total tax payable from the employee's salary, resulting in reduced overall TDS from wages. Suresh Surana, a practising chartered accountant, told ET, "This year, Form 16 will show not only tax deducted by the employer on the salary income, but will also show tax deducted and tax collected on other sources of income such as interest on fixed deposits or tax paid as TCS on foreign travel expenditure, etc. However, this will happen only if a salaried employee has shared the details of other taxes deducted (TDS/TCS) via Form 12BAA. " Also Read | ITR e-filing FY 2024-25: ITR-1 and ITR 4 forms enabled online for return filing on income tax e-filing portal; check details 3. NPS Benefits: Under Section 80CCD (2) in the new tax regime, employees are permitted to claim a deduction of up to 14% of their basic salary. This applies to the employer's contribution towards the employee's National Pension System (NPS) account. The enhanced deduction will be reflected in Form 16 only for those who have opted for the new tax regime for TDS from salary. However, if an employee switches from the new to old tax regime whilst filing ITR, the deduction benefits will decrease. In the old tax regime, employees can only claim a deduction of 10% of their basic salary under Section 80CCD (2) for their employer's NPS contribution. Stay informed with the latest business news, updates on bank holidays and public holidays . AI Masterclass for Students. Upskill Young Ones Today!– Join Now


India Gazette
30 minutes ago
- India Gazette
Indian Banking Sector to see moderate credit growth amid profitability pressure: BCG Report
ANI 11 Jun 2025, 16:49 GMT+10 New Delhi [India], June 11 (ANI): The Indian banking and financial services industry (BFSI) is currently experiencing a dynamic period characterised by moderate credit growth expectations alongside evolving profitability pressures, according to a report by Boston Consulting Group (BCG). The report further adds that, while certain segments, such as mutual funds and insurance, demonstrate robust upward trajectories, the overall credit growth for the year has seen a slowdown, even as deposit growth remains profitability within the banking sector is facing headwinds. Net Interest Margins (NIMs) are projected to be under pressure as repo-linked loans reprice due to rate cuts, compelling banks to lower deposit rates. However, an elevated Credit-Deposit (CD) ratio intensifies competition for low-cost deposits, further limiting banks' ability to reduce rates and impacting profitability, particularly for mid-sized banks and Small Finance Banks (SFBs). While the banking industry overall reported a 16 per cent year-on-year growth in Net Profit, this masks varied performances. Furthermore, Public Sector Undertaking (PSU) banks have shown a strong upward trend with a 26 per cent (YoY) PAT growth, outperforming private banks which posted an 8 per cent (YoY) PAT growth. However, SFBs have experienced a sharp decline in profitability due to rising credit costs. Banks have seen an improvement in credit costs, declining from 0.6 per cent to 0.4 per cent, while NBFCs faced an increase from 1.3 per cent to 1.7 per report also highlights that, the broader BFSI landscape presents a mixed picture. Mutual fund Assets Under Management (AUM) reached an all-time high, demonstrating an impressive 18 per cent year-on-year growth. The insurance sector also showed positive momentum, with premiums rising by 7 per cent year-on-year in March 2025. This upward trajectory in MF and insurance premiums signifies continued investor interest and market penetration in these terms of deposits, growth has remained steady, with overall deposits increasing by 11 per cent year-on-year in FY25, reaching Rs229.3 Lakh Crore. Aggregate deposits grew by 12 per cent year-on-year. However, CASA (Current Account Savings Account) growth has remained muted, indicating a shift in the composition of deposits. Simultaneously, as highlighted earlier, credit growth has slowed down this year, with total net advances growing by 12 per cent year-on-year, and aggregate credit growing by 13 per cent, year-on-year. (ANI)