Latest news with #NipponIndiaETFGoldBeES
Time of India
10 hours ago
- Business
- Time of India
Equity, debt or gold, which asset class has delivered highest returns in last 11 years? Here's an annual performance tracker
Gold proves crucial in portfolio performance ranking In this TrendMap, we have considered the weighted annual returns for comparison. The equal weighted portfolio of equity, debt, and gold generated the highest returns in 2025 year-to-date. Moreover, such a portfolio delivered double-digit returns in six of the past 11 years. In contrast, the returns generated by the portfolio with a strong debt component has seen high volatility since 2020. After topping the charts in 2023 and 2024, the portfolio with a strong equity component skidded down in 2025 year-to-date amid high turbulence due to global macroeconomic uncertainties and valuation concerns. Gold has emerged as a crucial asset. Portfolios with zero gold exposure remained in the lowest two ranks in six out of the last 11 years. Looking at the risk-reward ratio, of the seven defined portfolios based on the average returns and standard deviation over the last 11 years, the portfolio with the higher debt component (debt 60%) has the most optimal risk-to-reward ratio, followed by the equal weighted portfolio. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like 모기 잡지말고 켜두면 다 죽어! 앱스토리몰 더 알아보기 Undo Comparatively, the portfolio with the highest equity component has the most sub-optimal risk-to-reward ratio. Source: ACE MF. *2025 data is YTD based on 30 May 2025 closing values. Other years' returns are calculated between the first and the last trading day closing values. WAR is the weighted average return (or portfolio Live Events return) of the given investment allocation. Benchmarks used: Equity: Nifty 500 Index, Debt: Crisil Composite Bond Index, Gold: Nippon India ETF Gold BeES.
Mint
04-05-2025
- Business
- Mint
Gold vs Equities: What should be your portfolio diversification strategy? Experts weigh in
Gold price today: Gold has remained significantly volatile in 2025, posting over 30 per cent gains since last year. On April 22, Gold prices touched peak of ₹ 1 lakh per 10 grams. Historically, Gold has posted a 15 per cent CAGR return since 2001. Gold return has also beat the Inflation and has outperform inflation more than 2% to 4% from 1995 onwards, say experts. According to Manoj Kumar Arora, Managing Director at Almondz Global, Gold prices are expected to remain elevated with continuous buying from central banks on concerns of geopolitical tensions, tariff threats, inflation concerns in US. 'We believe Tariff-driven recession and stagflation risks are forecasted to continue for gold's structural bull run. We keep our positive stance on Gold with strong central banks' purchases and demand stemming from falling Treasury yields that will push gold prices to continue to be one of the best-performing assets in 2025,' Arora said. Experts believe that Gold has always acted as a safe option in times of economic uncertainty, however, putting all your money into gold and ignoring stocks would not be wise. Yogesh Kansal, Co-founder and Chief Business Officer, Appreciate suggest keeping about 5–15% of your portfolio in gold, a similar amount in short-term bonds, and the rest in a mix of Indian and international stocks. 'This year, stock markets have struggled with rising inflation and renewed trade tensions between the U.S. and China. To invest in gold, Nippon India ETF Gold BeES and SBI Gold ETF are large Gold ETFs that give the benefit of price appreciation without the downsides of physical gold. Also, Kotak and ICICI Prudential offer lower-cost alternatives with expense ratios of 0.55% and 0.5%, respectively. Besides Indian and U.S. stocks, looking at European companies like defense firms, chipmaker ASML, and pharma leader Novo Nordisk can add strength to your investments,' Kansal said. Disclaimer: This story is for educational purposes only. The views and recommendations above are those of individual analysts or broking companies, not Mint. We advise investors to check with certified experts before making any investment decisions. First Published: 4 May 2025, 02:22 PM IST
Economic Times
30-04-2025
- Business
- Economic Times
The golden illusion: Know the risks behind gold's safe haven image
Tired of too many ads? Remove Ads Over the past 15 years, gold has delivered an annualized return of 10.73% as compared to 12.49% from equities and over the 5-year period ending 31st March 2025, gold has delivered a CAGR of 14.03% vs 26.23% return in equities. A significantly higher return in equities over the past five years is also on account of lower base five years back, post the covid led market fall. This also reflects in the performance of equities in the previous five year period, i.e. from March 2015 to March 2020, which was one of the worst periods for equities with an annualized return of just 1.29% vs 9.65% in gold. In terms of downside risk, the maximum drawdown (maximum loss) that a gold investor would have experienced during this 15-year period is 29.47% - from 28th August 2013 to 31st July 2015. In comparison, the maximum drawdown in equities was 38.11% during the beginning of the covid pandemic which was 17th January 2020 to 23rd March 2020. More importantly, while gold may be a little less volatile than equities, unlike the common perception of gold being a safe-haven asset, it does exhibit reasonably high volatility, especially when compared to less volatile or safer asset classes such as fixed income. The 15-year annualized volatility of gold at 14.95% is only marginally lower than volatility of 17.11% in equities. What's interesting, however, is that there has been a negative correlation between equities and gold, which makes it a great asset class to complement equities, in order to reduce overall portfolio volatility and improve risk adjusted performance. The 15-year correlation between the two asset classes is -0.22. The golden takeaway for investors Tired of too many ads? Remove Ads Most investors perceive gold as a safe-haven asset and this belief has only strengthened in recent times, as there has been a significant surge in the gold prices amidst the global economic uncertainty. As a result, the demand for gold has skyrocketed, and with Akshaya Tritiya around the corner, many investors are likely to flock to invest in the precious metal. However, beneath the perception that gold never loses its shine, many investors tend to overlook the risks involved while investing in gold. So, if you are planning to invest in gold, do ask yourself an important question before investing - Have I truly understood the risk involved?And to help you assess the risk-reward associated with gold investing, we studied the past 15-year price data (from 31st March 2010 to 31st March 2025) of gold and also compared it with equities , which is often considered to be one of the riskiest asset classes. Here's what we found:Data source: Ace MF, NSE. Performance of gold is represented by NAV of Nippon India ETF Gold BeES and performance of equities is represented by Nifty 500 TRI. Annualized volatility is calculated as standard deviation of the monthly returns multiplied by square root of 12. The volatility in gold prices in INR is influenced by various factors including international gold prices, dollar movement vs INR, import duty, taxes, etc. Past performance is not an indicator of future gold is often seen as a safe haven, the historical data on volatility and drawdowns suggest it's not without risk. However, its negative correlation with equities makes it an interesting asset class for diversification , helping smooth out overall portfolio performance. As such, investors will do well not to go overboard with gold exposure but to have a 10-20% allocation as a smart complement to equity and fixed income holdings in the portfolios.(The author Nilesh D Naik is Head of Investment Products, (PhonePe Wealth). Views are own)(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of the Economic Times)
Time of India
30-04-2025
- Business
- Time of India
The golden illusion: Know the risks behind gold's safe haven image
Most investors perceive gold as a safe-haven asset and this belief has only strengthened in recent times, as there has been a significant surge in the gold prices amidst the global economic uncertainty. As a result, the demand for gold has skyrocketed, and with Akshaya Tritiya around the corner, many investors are likely to flock to invest in the precious metal. However, beneath the perception that gold never loses its shine, many investors tend to overlook the risks involved while investing in gold. So, if you are planning to invest in gold, do ask yourself an important question before investing - Have I truly understood the risk involved? And to help you assess the risk-reward associated with gold investing, we studied the past 15-year price data (from 31st March 2010 to 31st March 2025) of gold and also compared it with equities , which is often considered to be one of the riskiest asset classes. Here's what we found: by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Delhi – Rediscover clear hearing with these tiny but powerful hearing aids. Learn More Undo Over the past 15 years, gold has delivered an annualized return of 10.73% as compared to 12.49% from equities and over the 5-year period ending 31st March 2025, gold has delivered a CAGR of 14.03% vs 26.23% return in equities. A significantly higher return in equities over the past five years is also on account of lower base five years back, post the covid led market fall. This also reflects in the performance of equities in the previous five year period, i.e. from March 2015 to March 2020, which was one of the worst periods for equities with an annualized return of just 1.29% vs 9.65% in gold. In terms of downside risk, the maximum drawdown (maximum loss) that a gold investor would have experienced during this 15-year period is 29.47% - from 28th August 2013 to 31st July 2015. In comparison, the maximum drawdown in equities was 38.11% during the beginning of the covid pandemic which was 17th January 2020 to 23rd March 2020. More importantly, while gold may be a little less volatile than equities, unlike the common perception of gold being a safe-haven asset, it does exhibit reasonably high volatility, especially when compared to less volatile or safer asset classes such as fixed income. The 15-year annualized volatility of gold at 14.95% is only marginally lower than volatility of 17.11% in equities. What's interesting, however, is that there has been a negative correlation between equities and gold, which makes it a great asset class to complement equities, in order to reduce overall portfolio volatility and improve risk adjusted performance. The 15-year correlation between the two asset classes is -0.22. Data source: Ace MF, NSE. Performance of gold is represented by NAV of Nippon India ETF Gold BeES and performance of equities is represented by Nifty 500 TRI. Annualized volatility is calculated as standard deviation of the monthly returns multiplied by square root of 12. The volatility in gold prices in INR is influenced by various factors including international gold prices, dollar movement vs INR, import duty, taxes, etc. Past performance is not an indicator of future results. The golden takeaway for investors While gold is often seen as a safe haven, the historical data on volatility and drawdowns suggest it's not without risk. However, its negative correlation with equities makes it an interesting asset class for diversification , helping smooth out overall portfolio performance. As such, investors will do well not to go overboard with gold exposure but to have a 10-20% allocation as a smart complement to equity and fixed income holdings in the portfolios. Live Events (The author Nilesh D Naik is Head of Investment Products, (PhonePe Wealth). Views are own)
Time of India
28-04-2025
- Business
- Time of India
Time to rejig your investments? Here's why gold is the X-factor between lower and higher-return generating portfolios
Balanced portfolios with gold deliver consistent outperformance In this TrendMap, we have considered the weighted annual returns for comparison. The equal weighted portfolio of equity , debt and gold has topped the charts in seven of the past 11 years. Portfolios with a strong debt component ranked in the top two in six of those years. #Pahalgam Terrorist Attack India stares at a 'water bomb' threat as it freezes Indus Treaty India readies short, mid & long-term Indus River plans Shehbaz Sharif calls India's stand "worn-out narrative" On the other hand, high volatility associated with the portfolio with a strong equity component positioned it in the lowest two ranks in six out of the past 11 years. Looking at the risk-return profile of the seven defined portfolios in the past 11 years, the average weighted annual return and average standard deviation of the portfolio with a strong equity component have been the highest. The average return and average standard deviation have been the lowest for the portfolio with a strong debt component. Gold has clearly emerged as a crucial asset—every portfolio with gold delivered positive returns after the Covid-19 outbreak. In contrast, portfolios with zero gold exposure have recorded a loss in one of the six years since 2020. Source: ACE MF. Rankings based on weighted annual returns. *2025 rankings are based on YTD weighted annual returns, as on 18 April 2025 closing values. Other years' rankings are based on weighted annual returns that are calculated between the first and last trading day closing values. Benchmarks used: Equity: Nifty 500 Index; Debt: Crisil Composite Bond Index; Gold: Nippon India ETF Gold BeES.
