Gold vs Equities: What should be your portfolio diversification strategy? Experts weigh in
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
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
The Hindu
25 minutes ago
- The Hindu
Phone assembly domestic value addition is 23%, new report claims
A new study by the Thiruvananthapuram-based Centre for Development Studies (CDS) asserts that the gains from India's mobile phone manufacturing are greater than skeptical analyses have previously assessed. Domestic value addition has already reached 23%, the report claims, compared to single digit estimates elsewhere. Specifically, the report does not agree with the notion that phone assembly is an area of 'trade surplus,' a point contended notably by RBI governor Raghuram Rajan, who said in a brief paper with a colleague, Rohit Lamba, that since India was still importing nearly all components that were being assembled in mobile phone manufacturing, the result was India remaining a net importer in effect. Mobile phone manufacturing — encouraged through Union government schemes like the Production Linked Incentive scheme — has been a much touted success story for Indian domestic electronics manufacturing, fueling hopes of similarly promising results elsewhere. ₹4.1 lakh crore of finished mobile phones were manufactured in India in 2024 according to an industry estimate. The number isn't necessarily indicative of phone assembly as a part of the economy as assembly is usually estimated to only account for 4% of a phone's selling price. The case against India running a phone trade surplus rests on a 'misleading assumption' that imports of the components that go into such assemblies are exclusively going into phones, and then getting shipped back out of the country, C. Veeramani, CDS's director said. 'We used data from the Annual Survey of Industries, and that shows that the actual use of imported components in the mobile phone sector is less than 25%.' Dr. Veeramani reported his findings to the press at an event by the India Cellular and Electronics Association (ICEA), a trade body representing electronics manufacturers; the CDS director's estimates of domestic value addition were even higher, he said, than the ICEA's: 'The Total DVA (direct + indirect) increased to 23%, amounting to more than $10 billion in 2022-23,' the report says. China factor A key recommendation in the report is to focus on scaling assembly operations in the medium term, rather than pressing firms immediately to procure components from local sources. 'We cannot have a robust [electronics manufacturing] strategy keeping China out, that will not work,' Dr. Veeramani said. 'China has to be part of the game and a mindset change is needed there.' If Chinese firms were invested in India, Dr. Veeramani said, they would have no incentive to block movement of capital goods and Chinese nationals to India, something that some phone and semiconductor makers are facing in recent months.
Economic Times
25 minutes ago
- Economic Times
Can Infosys maintain its momentum after reporting strong June 2025 quarter growth?
Agencies Live Events (You can now subscribe to our (You can now subscribe to our ETMarkets WhatsApp channel ET Intelligence Group: Infosys reported strong sequential revenue growth for the June 2025 quarter driven by lower base in the previous quarter, higher pricing, and improved utilisation. In comparison, its peers including Tata Consulting Services HCL Technologies , and Wipro failed to report a meaningful sequential top-line also revised the FY26 constant currency (CC) revenue guidance to 1-3% growth from earlier 0-3% growth citing a higher traction in new deal wins during the June quarter. For Infosys, revenue grew by 4.5% sequentially to $4,941 million in the June quarter after falling by 4.2% in the previous quarter. Analysts on average had anticipated 2.8% June quarter sequential growth may not help much in predicting the trend in coming quarters since it is benefitted by the low base in the previous quarter. A year-on-year comparison shows that revenue rose by 4.8%, the second fastest growth in nine quarters after the 5.9% increase seen in the December 2024 quarter. Given a sustained momentum in the European market and strong order booking in the June quarter, the country's second largest software exporter is expected to show improved traction in the coming company continued to show improving year-on-year business growth-12.3% in the June quarter, coming on the back of 13% growth in FY25 - in the European market, which contributes nearly one-third to its revenues. It reported flat trend in the US, its largest market, which forms over 56% of revenue. In addition, the total contract value (TCV) of large deal wins for the June quarter amounted to $3.8 billion, the highest since the previous year's June quarter when the TCV was $4.1 billion. The operating margin (EBIT margin) fell by 20 basis points sequentially to 20.8%. While phase-wise salary increase in the quarter and currency headwinds impacted the margin, better pricing and utilisation, and absence of acquisition related impairments compared with the prior quarter provided revising the lower end of the revenue guidance upwards, the company has retained the target margin band at 20-22% for FY26 indicating that there may not be any significant margin levers in the short the majority of peers, Infosys also reported higher employee attrition, which rose to 14.4% in the June quarter from 14.1% a quarter ago and 12.7% a year ago. The company's headcount increased by 8,456 year-on-year to 323,788, the highest addition among peers. The company management has stated that it would continue to execute hiring for the current fiscal year as planned. Infosys has gained nearly 11% on bourses since announcing its March quarter numbers on April 17, beating the 10% gain in the BSE Infotech index and the returns earned by peers. The stock is expected to stay on investors' radar given the sustained traction in new deals.
Mint
25 minutes ago
- Mint
Best stock recommendations today: MarketSmith India's top picks for 24 July
Indian equity benchmarks closed on a strong note on 23 July, with the Nifty gaining 159 points or 0.63% to settle at 25,219.90. The recovery was largely supported by strength in major banking stocks, while heavyweight stocks across other key sectors showed signs of stabilising. However, the IT sector remained under pressure, continuing its gradual decline. Two stock recommendations for today by MarketSmith India Manorama Industries Ltd.(current price: ₹1,585) K.P.R. Mill Limited (current price: ₹1,230) How the market performed on 23 July Nifty traded with a positive bias, gaining over half a percent and providing some respite after recent losses. After a modest start, the index remained range-bound in the first half of the session. However, buying in select heavyweight stocks, particularly in the banking and financial sectors, lifted the index higher. It moved closer to the previous swing high near 25,250 before closing at 25,219.90. The advance-decline ratio was balanced at 1:1, reflecting neutral market breadth. The index continues to trade between its 50- and 21-DMA, indicating consolidation within a defined range. On the daily chart, the relative strength index (RSI) has turned upward and is nearing 52, suggesting early signs of a potential reversal. However, the daily MACD remains in a downtrend with a negative crossover above the zero line, reflecting that underlying bearish sentiment still lingers. According to O'Neil's methodology of market direction, market status has been downgraded to an "Uptrend Under Pressure" as Nifty breached its "50-DMA" and the "distribution day count" rose to five. The index closed above 25,200 and continued to trade above its 50-DMA, indicating a potential pullback rally. For bullish momentum to resume, a decisive breakout and sustained close above 25,300 will be crucial. On the downside, failure to hold above 24,900 may trigger further weakness, with key support levels seen at 24,750 and 24,500 in the coming sessions. How did Nifty Bank perform? Nifty Bank opened on a strong note and traded in positive territory throughout the session, reflecting sustained buying interest. The index successfully reclaimed its 21-DMA, indicating a potential shift in short-term sentiment. On the technical front, a bullish candle was formed on the daily chart, with a higher-high and higher-low price structure. This pattern suggests strengthening momentum and the possibility of further upside. Overall, the day's price action was technically constructive, reinforcing a positive outlook for the index. The momentum indicator, RSI, has inched higher and is currently positioned at 57, indicating mild strengthening. Meanwhile, the MACD continues to trade above its central line, despite maintaining a negative crossover. This setup reflects a mixed momentum outlook, with early signs of recovery tempered by caution. According to O'Neil's methodology of market direction, Bank Nifty remains in a 'Confirmed Uptrend', a status it has maintained over the past few weeks. Nifty Bank is currently trading well above its 50-DMA and has reclaimed its 21-DMA, reflecting a positive undertone. If the prevailing buying momentum persists, the index may gradually advance toward 57,500–57,600 in the near term. Conversely, a sustained close below 56,200 could trigger an additional downside, with potential support near 55,000. MarketSmithIndia is a stock research platform and advisory service focused on the Indian stock market. It offers tools and resources to help investors make informed decisions based on the CAN SLIM methodology, founded by legendary investor William J. O'Neil. You can access a 10-day free trial by registering on its website. Trade name: William O'Neil IndiaPvt. Ltd. Sebi Registration No.: INH000015543 Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of Mint. We advise investors to check with certified experts before making any investment decisions.
