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Economic Times
2 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.
Economic Times
4 days ago
- Business
- Economic Times
Raksha Bandhan: Could a mutual fund SIP gift today secure your sibling's future?
Synopsis This Raksha Bandhan, consider gifting a Systematic Investment Plan. A SIP can help siblings build wealth over time. Experts suggest a monthly investment in Nifty 50 Index can yield substantial returns. Linking the SIP to a specific goal makes it more meaningful. Remember to consider tax implications while gifting. Choose funds based on risk appetite and investment horizon. This Raksha Bandhan, consider gifting a mutual fund SIP to secure your sibling's financial future. Raksha Bandhan is a time-honoured tradition celebrating the bond between brothers and sisters. While sweets, clothes, or gadgets are the usual go-to gifts, a new idea can be gifting investments. Among them, a mutual fund Systematic Investment Plan (SIP) can be one of the options to secure your sibling's future. A mutual fund SIP allows you to invest a fixed amount regularly in a chosen fund, making it a disciplined and convenient way to create wealth over time. Starting a SIP today for your sibling — even with a modest amount — can grow into a significant corpus over the next 10–15 years thanks to the power of compounding. An expert shares that a monthly SIP of Rs 10,000 into Nifty50 index since the last 10 years would have built a corpus of Rs 25.5 lakh. Also Read | Over 50 mutual fund SIPs give negative returns in 1 year. Should you pause, redeem, or continue? Rs 10,000 SIP into Nifty 50 Index every month since last 10 years would have built a corpus of Rs 25.5 lakh, similar SIP in the last 5 years would have built a corpus of over Rs 8.5 lakh and 3 years ago would have built Rs 4.37 lakhs. This is the power of compounding,' Shaily Gang, Head-Products, Tata Asset Management shared with ETMutualFunds. One of the best ways to make this gesture meaningful is to link it to a specific financial goal. Whether it's funding higher education, a dream trip, wedding expenses, or even a house down payment. A goal-based SIP keeps the investment purposeful and motivates the recipient to continue it. The expert while attributing it to a report said that In India, 30% of personal loan borrowers in the first half of 2025 used the funds for travel and this is a growing trend of Indians using personal loans to fund vacations so why pay interest for a personal goal which can be well achieved with proper planning through the last 5 years Nifty 50 has yielded close to 14% CAGR and in the last 3 years it has yielded around 13% CAGR. In the last 25 years Nifty 50 has yielded around 14% CAGR on SIP investment. Thus for SIP in equities suit medium to long term goal accomplishment,' Gang said. When gifting a SIP, there are a few tax rules you should be aware of. The expert explains that the receiver of the Gift would be taxed on Capital Gains like how the person would have invested in his / her own name. There is a wide range of options available to invest in mutual funds. But the choice of mutual fund depends on your sibling's investment horizon, risk appetite, and goals. According to Gang, in an index fund portfolio, the index applies 2 -3 rules to a pre-defined universe for stock selection and weight allocation. Also Read | Quant Small Cap Fund hikes stake in Jio Financial Services in July She further explains that in an active portfolio, the basis of fund manager's decisions is the ground-up criteria and it may be different for different stocks. Just like an investor would want to diversify amongst two funds i.e. basically judgement of two fund managers, it would be a good idea to diversify amongst active investing approach and passive investing recommends that a beginner can have exposure towards flexicap active funds, broad market cap based indices like Nifty 50 / Nifty 500 and Gold ETFs. There are many basic industries unique to the midcap and smallcap segment while higher liquidity offered by largecaps tends to limit the adverse impact of bear market phases. 'Sectors in each market cap segment could either offer Value or reflect growth at any given point in time. If the investor is unable to decide on reallocating to various fund categories at any point in time, in order to arrive at the apt allocation to market cap segments based on valuation, best would be to invest into active Flexicap funds and Multicap funds. Largecap space can be covered via Index funds.'A regular investor, the expert recommends that they can add sector funds to their portfolio. The idea of sector funds is also to bring out a unique portfolio, offering exposures to certain micro areas of the market, thus having higher sector oriented risk or systematic risk apart from general equity market risk. 'Also, the presence of these sub-segments in diversified funds is to a small extent. Regular investors can look at splitting across Sector Active funds and Passive funds. (Source: internal calculations),' she material gifts that lose value over time, a SIP gift grows in value and can become a lifelong reminder of your Raksha Bandhan, you could go beyond traditional gifts and give your sibling the gift of financial security. A mutual fund SIP is not just an investment in money — it's an investment in dreams, milestones, and a stronger future.
Time of India
30-07-2025
- Business
- Time of India
Tata Mutual Fund unveils a campaign to raise awareness about Index Funds
Tata Mutual Fund has unveiled the latest edition of its investor education campaign, ' Index Funds Simple Hai', strengthening its commitment to make index funds simpler and more accessible for a broad spectrum of investors – from first-time participants to experienced investors looking to explore simpler, transparent options as part of their investment journey. This new edition uses a character-driven storytelling approach to reinforce one simple message: investing in index funds is simple, smart, and accessible. As part of Tata Mutual Fund's ongoing ' Desh Kare Nivesh ' initiative, the 2025 campaign is rooted in everyday scenarios. Whether it's a local train market chatter, a confusion over fancy tea options, or friends debating what movie to watch, the campaign promotes three key benefits of index funds: match the market effortlessly, save on cost and invest hassle-free. The campaign aims to connect with a wide and growing audience of investors across urban India and Bharat — including men and women alike – who are taking greater ownership of their financial decisions . 'Index funds have established themselves as a smart and inclusive investment choice," said Prathit Bhobe, chief executive officer and managing director of Tata Asset Management . "With our latest campaign, we aim to simplify the complexities, raise awareness, and empower investors to make confident and informed decisions. The rapid growth in AUM of index funds is a testament to the category's increasing acceptance." This growth highlights the increasing appeal of index funds among Indian investors seeking simple and transparent options in building long-term wealth . Ashish Pawar, head – marketing, Tata Asset Management, added, 'Our aim with this campaign is to bring index funds into everyday conversations. The messaging is simple, yet sharp and the core content is relevant for anyone looking to make informed and efficient investment choices.' The campaign will be amplified through: Television and Connected TV (CTV) for broad awareness Digital platforms including social media platforms Regional content rollouts The campaign is conceptualised and executed by Sparkt Private. Watch the videos here:
Hans India
15-07-2025
- Business
- Hans India
Hyderabad Investors Pour Rs 310 Cr into Tata Arbitrage Fund in 3 months as Market Volatility Shifts Strategy
Arbitrage Funds are gaining traction as an investment option amid equity market volatility, particularly for those seeking low risk investment opportunity. By capitalising on price differences between the cash and futures markets, these funds seek to perform better in turbulent conditions, giving fund managers greater scope for intra-month trading opportunities. "In the current environment, arbitrage funds are uniquely positioned to capture the potential benefits of market volatility while shielding investors from direct equity risks. Elevated roll spreads and sustained volatility have enabled arbitrage funds to deliver reasonable returns, even as traditional income avenues have become less attractive. For investors seeking equity tax returns, arbitrage funds offer a suitable proposition," said Sailesh Jain, Fund Manager, Tata Asset Management. According to data from the Association of Mutual Funds in India (AMFI), arbitrage funds attracted Rs 43,077 crore between April and June 2025, surpassing inflows into other hybrid and equity categories. This surge underscores investor preference for instruments that can deliver relatively reasonable returns while minimising equity risk during periods of heightened uncertainty. However, profit is not guaranteed. Reflecting the broader industry trend, the Tata Arbitrage Fund too, saw inflows of Rs 5,217 crore between April and June 2025, with Rs 310 crore coming from Hyderabad. The fund had assets under management of Rs 14,274 crore as of June 30, 2025. The environment is especially conducive for arbitrage strategies, as elevated volatility and strong roll spreads have opened potential return opportunities. The Reserve Bank of India's recent easing measures—cutting the repo rate by 50 basis points and the Cash Reserve Ratio by 100 basis points—has further boosted the appeal of arbitrage funds over traditional fixed income avenues. The upcoming corporate earnings and a positive monsoon outlook are also expected to lift market sentiment. As global and domestic uncertainties continue to cloud market outlook, arbitrage funds are a choice for investors to help them navigate choppy waters. With interest rates on a downward trend and savings account returns declining, traditional fixed-income options have become relatively less attractive in terms of returns. At the same time, factors such as the anticipated Indo-US trade deal, tariff negotiations, and ongoing geopolitical tensions are keeping the market volatility elevated. Although the US dollar index remains subdued for now, any spike in global risk aversion may trigger fresh market swings. In this backdrop, arbitrage funds seek to offer investors a low-risk way to capitalise on volatility without direct equity exposure.
Business Recorder
09-07-2025
- Business
- Business Recorder
India mutual fund investors chase equities, gold and silver in quest for returns
Mutual fund allocations bounced back in India last month, driven by strong retail participation, with investors also seeking out gold and silver funds in the hunt for stronger returns. Indian equity mutual fund inflows rose 24% to 235.87 billion rupees($2.75 billion), snapping a five-month decline, as investors poured money across segments and turned to gold and silver ETFs in search of returns amid rising global trade uncertainty. India's mutual fund industry hit a new record in June, with net assets under management (AUM) climbing to 74.41 trillion rupees. The inflows supported the benchmark Nifty 50, which gained 3% for the month, while the small-caps and mid-caps jumped 6.7% and 4%, respectively. Gold Exchange Traded Funds saw inflows surge ten-fold month-on-month to 20.81 billion rupees in June, hitting a five-month high, data from the Association of Mutual Funds in India showed on Wednesday. 'Rising inflows into Gold ETFs suggest investor interest to seek both diversification and gain from the performance of the precious metal,' said Anand Vardarajan, chief business officer at Tata Asset Management. RBI action in focus as Indian bonds stay put before US data Silver ETFs attracted inflows of 20.04 billion rupees, up from 8.53 billion rupees in May. Large-cap equity mutual funds recorded a 36% monthly jump to 16.94 billion rupees, while small-cap and mid-cap funds posted a 25% and 34% rise in inflows. Contributions via systematic investment plans (SIPs) – a popular periodic investment route for mutual fund investors - rose to a record 272.69 billion rupees in June. The number of contributing SIP accounts also climbed to 86.4 million from 85.6 million in May. 'Strong inflows and record SIPs reflect improved sentiment, better valuations post-correction, and the enduring structural confidence in Indian equities,' said Himanshu Srivastava, associate director, manager research at Morningstar India. If June-quarter earnings hold up and macro stability continues, strong domestic inflows could cushion markets from foreign outflows and trade jitters, two analysts said.
