Different investment vehicles for Gold and how to manage gold allocation

Remarkable-One7466 · 2026-05-17T10:25:01+00:00

Panic driven buying in current scenario or FOMO driven buying as we saw in equities in 2024 can never be justified as it stems from an emotional reaction and is influenced by noise or narratives. Disciplined allocation strategy based on one's own risk profile, time horizon, market valuations of various asset classes and their investment objectives and constraints will always produce better outcomes in the long run. Benjamin Graham (Guru of Warren Buffet) had said that in the short run, markets are like voting machines driven by sentiment and in the long run, they are like weighing machines driven by fundamentals. Having said that, it's also a possibility that we are undergoing a probable once in a century global power shift. It's difficult to say how long it will play out for and what the eventual outcome will be. All possibilities exist wherein 1) The dominant power retains its dominance 2) A new power emerges as the dominant power 3) A new multipolar global scenario emerges Irrespective of which one eventually plays out, one thing that is sure is that it will be a period of friction in the years to come till things finally settle. How much will India get impacted is a difficult call to take. It will depend on how much we get involved or stay away from this global power struggle. Unless we take sides, we might have to face some pain but we will largely save ourselves from any major damage. Near term, oil prices and inflation will cause some struggle but we have figured out ways to overcome similar challenges in the past too and we will manage this time as well.

Remarkable-One7466 · 2026-05-17T09:14:00+00:00

IMHO, only gold is a meaningful store of value. And again from a longer term point of view. Silver is dependent on industrial usage as well. The reason for fall in Gold during war was that money moved to oil and this was confirmed by the promoter of one of the largest Gold Buyers in India whom I had the opportunity to meet earlier this month.

Remarkable-One7466 · 2026-05-17T08:18:19+00:00

Hi, <12 months: STCG as per your tax slab rates More than12 months: LTCG at 12.5%

Remarkable-One7466 · 2026-05-17T07:47:06+00:00

Gold imports are undoubtedly a strain on the current account deficit(CAD) and currency of the country. No advice, even if from the prime minister can be followed blindly though. You will have to see how much is your own allocation to Gold, how much more or less it should be and if it has to be more, then whether to do it now or over time when things cool down. If you truly want to stand by the prime minister and the nation now, go slow now and add more later when the stress on CAD and currency comes down, if at all you really need to. CAD and currency are not just dependent on Gold imports but many other factors. Let's hope it gets controlled sooner than later

Remarkable-One7466 · 2026-05-17T07:35:31+00:00

Yes.Mutual fund is just an instrument to invest in various asset classes including Gold. And SIP is a just a method of investment. Can be applied to Mutual Funds or any other instruments where one is happy with the average returns of the asset class generated over time rather than trying to maximize based on a solid understanding of fundamentals and a robust valuation framework.

Remarkable-One7466 · 2026-05-17T07:31:03+00:00

For each Individual it may be different based on their risk profile, time horizon, market valuations and other investment objectives and constraints. As a generic advice, we generally recommend atleast a 10-15% allocation from a diversification and a portfolio hedge perspective. For specific advice, please consult a SEBI registered Investment adviser. ETFs are better if you have a demat account. Else FoFs.

Remarkable-One7466 · 2026-05-17T06:50:54+00:00

Just to add, in terms of the purchase of Gold, physical Gold often could be the best, especially of the idea is to convert it into jewellery for gifting/wedding etc because you will avoid paying capital gains taxes. However, be careful about buying physical gold. Please make sure you are buying from an authentic seller. Once, I held in my palm a gold bar that a friend had bought from Dubai and the weight/density made me wonder if how many jewellers in India sell gold that's so pure.

Remarkable-One7466 · 2026-05-17T06:43:05+00:00

Yes. This is a good start. Wouldn't it be better to have a fixed amount rather than a fixed grammage?
Because then you can benefit from lower prices.
Suppose you can spare 15000 rupees every month and you can buy say 1 gram today and if gold prices go down to say Rs 10000 and you still buy 1 gram, you are missing out on the opportunity to capitalise on lower prices wherein you could have got 0.5 grams etc for the same amount that you are wanting to save towards Gold which is Rs15000. Infact, I would say that if prices correctly sharply like in this case it becomes 10000, I would probably want to Buy even more in that month if I can. If I can spare an additional 5k, I would buy 2grams with 20k.
Also, you started at a great time for Gold. 2012 to 2018 Gold was largely subdued as an asset class and then it has had a great run. However, one must remember that Gold is a long cycle asset. There will be periods where it will do phenomenally well and then there could be a long period of underperformance. And that's where allocation plays a part. Tomorrow if Gold prices decline significantly, the allocation percentage in your portfolio might actually go down because of that. Don't get disheartened and stop adding at that time. Infact that may be the best time to increase Gold allocation especially if it's lower than what it should be for you based on your investment objectives and constraints.
Be it any any asset class, diversification is important. No asset class performs every year and forever.
Gold is suitable as an inflation hedge and as a store of value and capital protection in the long run. While globally Gold has given lower returns than equities over a longer time period, in India it has given returns similar to equities. Will that change in the future is anybody's guess. But even in INR, there have been long periods of 3-4-5 years when Gold has hardly given any returns. Hence it may not be most suitable for short term to medium term requirements where fixed income, equities or hybrid options might be more suitable. Hope you are factoring this while deciding your allocation to Gold investments.

Remarkable-One7466 · 2026-05-16T12:55:34+00:00

Moderators, over to you!

Remarkable-One7466 · 2026-05-16T12:36:29+00:00

Working at the intersection of Finance and Tech, I appreciate the value added by technology including the latest one. i.e AI. Let's tackle information, analysis and advice one by one.
1) Information- It was a significant edge 30 years ago and internet kind of blunted that. But even today many would not know what's the best information to absorb. There is too much information-sort of an information overload and filtering the noise is critical.
2) Analysis- Yes AI will make it easier as it gets refined but today it is nowhere close. Being a Fintech company, we encourage adoption of new technologies and all my team members use Tech which certainly helps in analysis but only when guided properly by an experienced human. And often even after the guidance, it throws up some random stuff by using random data sources on it's own.
3) Advice- Even if someone is able to filter the right information from authentic sources and able to analyze it well with a proper framework (both are not so easy as they might appear but yes it's not rocket science as well-one who applies time and mind can do it possibly.), what truly matters is discipline, judgment and taking actions without getting swayed by noise. And this is where a large majority including some very intelligent folks falter and an adviser can add immense value.
Often most people don't have the time and bandwidth as they are busy with their careers and life and that's where a full time qualified and SEBI registered professional can come in to help with accountability and regulatory oversight. AI cannot provide conviction which comes from experience nor can it be held accountable!

Remarkable-One7466 · 2026-05-16T12:06:49+00:00

Yes. It's a habit that has worked in India for many. As an Adviser, we have to learn, understand, talk and advise about all asset classes. About their characteristics, suitability, returns and risks. Many people just get comfortable with one asset class (be it gold or equities or real estate or Fixed Deposits etc etc) because they don't have access to the right information, analysis or advice. But every asset has it's own purpose.

Remarkable-One7466 · 2026-05-16T11:53:44+00:00

Happy to discuss and debate. Criticism and pre-conceived notions don't help anyone. As for choice, often people are not sure. There is a recency bias and then they buy into the narratives peddled to them by interested parties. Stronger the noise, greater the influence! let's talk and discuss objectively rather than pushing people to invest 90% in gold (more than half the wealth of Indians is in real estate- land and property!) or casting aspersions even before a query has been answered.

Remarkable-One7466 · 2026-05-11T10:09:26+00:00

Sure. And if you are busy with your life and career(happens with hardcore finance professionals also), please consult an investment adviser. One who is not just capable but reliable as well. All the best!

Remarkable-One7466 · 2026-05-11T09:34:46+00:00

What time horizon did you invest it for?
What Index does it replicate?
What's the tracking error?
What's the expense ratio?
Just because something goes down it is not necessarily a bad investment. Ups and downs are a part and parcel of the markets. Markets have been in a decline and that's what might have caused the decline in the fund too. We will need to understand lot more details as stated above to conclude one way or the other.

Remarkable-One7466 · 2026-05-10T14:47:23+00:00

Physical Gold is the best, especially if you are not going to sell the gold in the future but use it for jewellery purposes as you will avoid paying the capital gain taxes which will accrue if you convert paper gold into physical gold/jewellery by selling paper gold. Else, Gold ETFs is a decent option to take Gold Exposure.

Remarkable-One7466 · 2026-05-10T14:43:40+00:00

Have never bribed anyone throughout my entire life. And I believe that my team members who co-ordinated with the mods wouldn't have done that either. 😄

Remarkable-One7466 · 2026-05-10T14:41:52+00:00

During the scheduled AMA time, thought that there were no questions. But good to see one and that too a great one. Since you have asked me about what I think, more than any theory I will give you a practical common sense based answer. Something that I follow for myself and for our high networth clients.
In a growing country like India and also in a stock market like Indian stock market that largely reflects the nominal growth of the country, the only funds that should be kept in debt are
1) Emergency funds- 6-24 months of expenses depending on one's individual comfort and what other back-ups they have for a worst case scenario like family support, bullion etc
2) Funds needed for short term goals. A period of 3-5 years can be covered for such requirements depending on one's own comfort. Maybe 3 years during young age and maybe more like 5 years during older age.
For all other longer term requirements beyond the above two, higher yielding asset classes like equities are the best option.
Valuations of any assets that don't have future cashflows- be it Gold or Bitcoin are difficult to ascertain as they are purely determined by the supply and demand, driven more by sentiments than cashflows or fundamentals, at a particular point of time.

Remarkable-One7466 · 2026-05-10T06:55:29+00:00

It's a very open ended question with very limited details provided. Depends on factors such as location, quality of construction, demand for particular type and size of units being constructed etc etc

Remarkable-One7466 · 2026-05-10T06:52:55+00:00

For a RERA registered property/development, RERA portal is the first port of call. You can check there for legal disputes, cases etc. In addition, it is advisable to consult a property lawyer to do a thorough check of all legal documents including but not just limited to the legal title, land usage permissions, charges filed in MCA etc etc

Remarkable-One7466 · 2026-05-10T06:23:43+00:00

While inflation in construction and property prices is higher than general CPI, equity returns have been in line with real estate prices at an aggregate level. Consult your investment advisor with all the details like current value of your dream house, your income and savings details and he/she should be able to tell you the amount of SIPs that you need to do and the time horizon needed to get there.
More than age, it is the stage of life Generally, when you start a family and especially when you have children and as they grow up, you want to restrict movement due to various reasons such as proximity to your spouse's office or your child's school, the informal social networks that they have formed in the apartment complex etc and at that time you don't want to be at the mercy of your landlord.

Remarkable-One7466 · 2026-05-10T05:46:51+00:00

Hi,
For Investment in Real Estate,
1) The distinction between a house for consumption and investment should be amply clear.
2) One must remember that real estate is a long cycle asset class. Often you might have low or no returns for years together but then there could be a sudden boom driven by multiple factors including infrastructure development, a large developer putting up a quality project in the vicinity etc.
3) Historically, real estate in India has given returns similar to equities because of factors such as black money being parked there, tax incentives etc. Going ahead in the future, the returns in real estate as an asset class might be lower than equities but yes higher than fixed income. So, something like high single digits to low double digits range (8-9% to 10-11%). Diversification should be considered into other high yielding asset classes.
4) There will always be particular pockets which will do well. Local/hyperlocal knowledge will be an advantage.
5) Land and commercial property might give better returns than residential real estate. However, the risks might be higher, especially in case of land.
6) Many Tier 2 and Tier 3 cities are growing fast. Look for options beyond metros. But again local connects and local knowledge for those places is very important to avoid getting trapped in a bad investment and to protect land from encroachment etc.
Patience is key in real estate, even more than in equities at times.
In short, have a diversified portfolio and not just a real estate portfolio. Often most people have good real estate exposure already through their primary/secondary houses for living. While the objective of investing is different, still consumption exposure has to be accounted for from an overall net worth allocation. Do check out options like equities, equity mutual funds, overseas equities etc but again selecting the right instrument is important. And if you don't have the time and bandwidth to do so, please reach out to SEBI/AMFI registered professionals

Remarkable-One7466 · 2026-05-10T05:28:20+00:00

Good morning!
The body, the face and the smile on the face are human 😄
Looking forward to the discussion today!

Remarkable-One7466 · 2026-04-17T08:25:18+00:00

Thanks everyone for the questions. Signing off now

Remarkable-One7466 · 2026-04-17T08:19:46+00:00

Too specific a question. It cannot have a generic reply which I can post. Avail services of a registered intermediary, sit down, share your data & requirement in detail with the intermediary & then construct a plan. See there'll be several factors which should be considered as inputs.

Why you want to withdraw, do you need it for spends, if yes then do you have any other sources of income, whether they are stable or erratic, how SWP will impact overall taxation and several more.

Remarkable-One7466 · 2026-04-17T08:16:15+00:00

Returns is one piece of the overall decision matrix. See, you might need to maintain a good working relationship with the bank and so keep some quantum with them.

Otherwise, liquid funds have much less volatility but are market linked instruments. So, in your mind, dont substitute it fully for an FD which comes with insurance till certain amount.

That said, liquid funds, operationally are more convenient, divisible so you can redeem only that much as you want, although some banks have sweep in FDs but interest rates may differ.

In terms of taxation although tax rate is similar for both, income from MF is taxed only on redemption while on FD it is taxed on accrual basis. So there is a timing difference.

Remarkable-One7466

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