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Economic Times
6 days ago
- Business
- Economic Times
Gold price hits record high: Should you buy now or beware?
Synopsis Gold prices in India have reached record highs. Experts attribute this to global economic uncertainty. US tariff policies and geopolitical tensions are factors. Central banks are diversifying into gold. Investors should consider gold as a long-term strategic asset. Gold ETFs and multi-asset funds are investment options. Experts advise a buy-on-dips strategy. Investors should align investments with their risk appetite. Gold prices in India have surged, driven by tariff uncertainties and a flight to safety amid geopolitical tensions. As the prices of gold in India soared to record levels this week and breached the Rs 1.02 lakh mark on Friday, the market experts believe that this surge is fuelled by US President Donald Trump's tariff policies and a broader flight to safety.'Uncertainty over the long-term reliability of the US dollar is prompting a global shift towards gold, with central banks actively reallocating reserves as a hedge. Coupled with rising geopolitical tensions, these factors have significantly strengthened gold's safe-haven appeal,' Rahul Singh, CIO – Equities, Tata Asset Management shared with Read | Parag Parikh Flexi Cap Fund increases stake in ITC and 11 other stocks in July Another expert lists several factors that have contributed to this surge in the gold prices which broadly includes a combination of macroeconomic and geopolitical to a report by ET Markets, Gold October futures prices at MCX on Friday hit another new all-time high of Rs 1,02,191/10 grams, driven by US trade tariff uncertainty and safe-haven buying by global central banks. Looking at the current gold price level, the important thing to know is should one increase, reduce, or hold their current gold allocation?In response to this, the expert from Kotak Securities responded that Tariff-driven inflation risks, combined with signs of a cooling US labor market, have increased stagflation concerns and alongside a high probability of a Fed rate cut in September, the outlook for gold remains bullish. Further, a buy-on-dips strategy appears prudent, with entry levels around $3,350/oz in spot gold and Rs 1,00,500/10 grams on Read | Quant Small Cap Fund hikes stake in Jio Financial Services in July On the other hand, Singh says that gold should be maintained as part of a long-term core allocation and with a weakening US dollar and rising geopolitical uncertainty, even central banks are considering diversifying into gold as these assets act as a hedge against global financial they should not be treated as short-term bets but rather as strategic portfolio allocations. While slight tactical changes may be made based on price movements, the fundamental role of gold as a strategic hedge against systemic risks supports continued holding over a 3–5 year horizon, he are different options to invest in gold such as in gold funds or ETFs, invest in physical gold, sovereign gold bonds, or multi asset funds are used for portfolio diversification. If you have a large portfolio, you can earmark a small percentage of the total portfolio (advisors say around 10%) to invest in gold. If you are starting out or you have a very small portfolio, you can give it a miss. Investors should remember that these funds wont offer you greater returns year after year. They are supposed to offer you diversification and add stability to your ETFs are exchange-traded funds that track the price of physical gold. Each unit of a Gold ETF is backed by a specific quantity of gold, usually equivalent to one gram. They are listed on stock exchanges, and you need a demat and trading account to buy and sell allocation funds are hybrid funds that need to invest a minimum of 10% in at least 3 asset classes. These funds typically have a combination of equity, debt, and gold. Some schemes also add international equities, InvITs and these different options available, the expert from Tata Mutual Fund recommends that Gold ETFs and multi-asset funds offer strategic advantages as gold ETFs provide liquidity and ease of use, while multi-asset funds allow dynamic rebalancing between asset classes, including gold and silver, with the added benefit of equity taxation and the choice depends on an investor's tax considerations and the level of involvement they prefer. Also Read | Multi asset mutual funds beat other hybrid funds in 1 & 3 years. Should they be in your portfolio? Another expert, Kaynat, echoes similar opinion and said that while physical gold remains a traditional option, ETFs and gold-focused mutual or multi-asset funds offer more convenient and tax-efficient the performance front, gold ETFs have offered an average return of 45.01% in the last one year and 31.50% average return in the current calendar year. On the contrary, multi asset allocation funds gave an average return of 7.16% in the last one year and an average return of 5.78% in 2025 so at the performance, Singh comments that gold has seen a strong rally and is now likely to enter a period of consolidation in the near term, even as its long-term bullish drivers remain intact. 'In the short run, we expect prices to stabilise within a broad range of $3,000–$3,500 per ounce, as markets adjust to the impact of changes in US tariffs, heightened geopolitical tensions, and persistent concerns over US economic growth. Any escalation on the tariff front or geopolitical front may boost demand for gold as a safe haven asset on worries over higher inflation and market uncertainties,' he gold continues to serve as a strong safe-haven asset, benefiting from tariff uncertainty, inflation concerns, and a weakening dollar, Kaynat said. Also Read | Quant Mutual Fund receives final nod from Sebi to launch India's first Specialized Investment Fund in August Quant Mutual Fund in its monthly release mentioned that August month tends to be, seasonally, more bullish for Gold and the fund house analysis have endorsed that Gold has peaked out around $ 3,500/Oz. and a medium-term top is in place and it has potential to correct by 12-15% in dollar terms over the next two should always invest based on their risk appetite, investment horizon, and goals. (Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times) If you have any mutual fund queries, message on ET Mutual Funds on Facebook/Twitter. We will get it answered by our panel of experts. Do share your questions on ETMFqueries@ alongwith your age, risk profile, and Twitter handle.
Time of India
07-08-2025
- Business
- Time of India
Multi asset mutual funds beat other hybrid funds in 1 & 3 years. Should they be in your portfolio?
Live Events What are multi-asset allocation funds? Multi asset allocation mutual funds have topped the return chart among all hybrid funds in the last one and three years, an analysis of the performance by all hybrid funds showed. The market experts believe that the combination of asset classes has helped manage risk while delivering solid returns, especially in the current market cycle.'It's evident that the strong performance has been driven not just by gold , but also by the rally in silver and overall favourable conditions for debt and equity. The combination of asset classes has helped manage risk while delivering solid returns, especially in the current market cycle,' Shruti Jain, Chief Strategy Officer, Arihant Capital Markets shared with Read | NFO Insight: Can this multi asset allocation fund help diversify your portfolio? There were around 23 multi asset funds in the last one year and only eight have marked their presence in the market in the last three years. In the last one year and three years, multi asset funds gave an average return of 8.12% and 16.46% Multi Asset Allocation Fund offered the highest return of around 16.89% in the last one year, followed by DSP Multi Asset Allocation Fund which gave 13.09% return in the same period. Shriram Multi Asset Allocation Fund was the only fund in the category which gave a negative return of around 3.14%. Quant Multi Asset Allocation Fund offered the highest return in the last three years of around 20.48%, followed by ICICI Pru Multi-Asset Fund which gave 19.15% return in the same period. Axis Multi Asset Allocation Fund offered the lowest return of 10.70% in the same at the historical performance and with these funds topping the return chart, Jain believes that the outlook for multi-asset funds remains positive. 'As markets navigate consolidation and global macro shifts, the diversified structure of these funds could help cushion volatility and capitalise on opportunities across asset classes. They present a stable investment route in times of economic uncertainty,' she allocation funds are hybrid funds that need to invest a minimum of 10% in at least 3 asset classes. These funds typically have a combination of equity, debt, and gold. Some schemes also add international equities, InvITs and equity allocation in the case of multi-asset funds could vary between 0-70%. Aggressive multi-asset funds could typically have 50-65% equity while the conservative ones could have between 35-50%. In the case of multi-asset funds, some schemes that allocate more than 65% to equity enjoy equity to the Sebi mandate, multi asset allocation funds invest in at least three asset classes with a minimum allocation of at least 10% each in all three asset classes. They aim to deliver ease from the volatility linked to plain vanilla equity to a report by ETMarkets, Gold and silver extended their gains amid safe-haven buying due to U.S. trade tariff uncertainty and weakness in the U.S. equity markets. The U.S. President again threatened India for imposing higher trade tariffs for importing Russian oil and supported safe-haven buying for precious metals. The U.S. equity markets plunged amid mixed U.S. economic data and the dollar index was also off day highs, supporting gold and silver gold and silver rallying and offering good returns, many investors are willing to invest separately in equity, debt, and gold funds against multi-asset allocation funds, to which Jain replies that as the market is in consolidation phase multi-asset or hybrid funds offer a balanced exposure across asset classes.'With silver and gold continuing to perform well and the rate cut cycle potentially favouring debt, multi-asset funds can be a compelling option right now for investors looking for diversification without actively managing allocations themselves,' Jain to another report by ETMarkets, Zerodha Fund House, which has just launched a new Multi Asset Passive FoF (fund of funds), comes with 25% allocation to gold ETF and 15% to G-Sec ETFs. The remaining 60% is divided equally between largecap and midcap investors were to invest separately in gold, equity, and debt and rebalance the portfolio every year, the resulting tax outgo could be significantly higher, denting overall post-tax returns. Multi-Asset Allocation funds, as a product category, are taxed on the basis of the equity allocation, according to a report by under management in multi asset funds rose 51% over the past year — from Rs 86,000 crore in June 2024 to Rs 1.3 lakh crore in June 2025. Fund managers also point to the tax efficiency of these products as a key draw for wealthy should always invest based on their risk appetite, investment horizon, and goals.: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)If you have any mutual fund queries, message on ET Mutual Funds on Facebook/Twitter. We will get it answered by our panel of experts. Do share your questions on ETMFqueries@ alongwith your age, risk profile, and Twitter handle.
