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India Today
4 days ago
- Business
- India Today
Is gold losing its shine? Here's why fewer people are investing in the yellow metal
For generations, gold has been every Indian family's trusted treasure. From weddings to festivals, buying gold symbolises pride, wealth and security. But times are changing fast. Many people are now rethinking their age-old love for yellow metal. So, is gold really losing its charm? Let's have a closer PRICES KEEPING BUYERS AWAYGold prices are hovering close to record highs. Today, at about 9:10 AM, MCX Gold August 5 contracts were up 0.19% at Rs 97,400 per 10 an average middle-class family, even a small piece of gold jewellery now feels like a huge expense. Many people prefer to spend that money on things they can use daily, instead of locking it away in a price surge has also made investors wary. 'With gold prices at close to an all-time high and with increased volatility, the sentiments remain mixed – while some investors are uncomfortable investing at the elevated price levels, others are looking to make the most of price falls,' says Nilesh D Naik, Head of Investment Products at (PhonePe Wealth). The figures paint a clear picture. According to the World Gold Council, India's jewellery demand fell by nearly 25% year-on-year in the first quarter of 2025. 'The jewellery demand in Q1 2025 was around 71 tonnes compared to an average of 180 tonnes in the previous two quarters,' adds INVESTORS NOW HAVE MORE CHOICESOne big reason for this shift is that younger investors have new choices. Stocks, mutual funds, SIPs and even crypto are pulling them in. 'With the increasing awareness about different asset classes and ease of access, the preference for equities has significantly increased among younger investors,' explains young people feel these options can grow their money faster than gold ever could. Unlike older generations, they don't see gold as the only shield for tough to Santosh Meena, Head of Research, Swastika Investmart Ltd., "The overall outlook for gold remains bullish, driven by rising global uncertainties such as US tariff tensions and growing scepticism towards the US dollar among central banks. The shift in central bank reserves away from the dollar is acting as a major tailwind for gold, reinforcing its status as a safe-haven asset."CHANGING PRIORITIES, CHANGING TRADITIONSBuying gold was once linked to family pride and status. Now, many youngsters see gold jewellery as old-fashioned. They'd rather spend on travel, gadgets or new families still buy gold for weddings and special occasions, they are spending less than GOLD GAINS GROUNDInterestingly, physical gold may be losing its shine, but paper gold and digital gold are becoming popular. Gold ETFs (exchange-traded funds) and digital gold give people an easy way to invest without worrying about lockers or safety.'There's rising acceptance for gold exposure through products such as gold ETFs/ funds and digital gold among younger investors,' Naik points prices dipped in June, investors didn't waste time. Net inflows in gold ETFs reached a five-month-high, and folios rose by over 40% in a year, from 5.4 million in June 2024 to over 7.6 million in June 2025, Naik YOU BUY, SELL OR HOLD?With gold prices at record highs and volatility in the market, investor sentiment is mixed. "It's better to stick to asset allocation when investing in gold. Gold can be volatile, but it's a good hedge against inflation," Naik suggests keeping at least 5–10% of your portfolio in gold because it often moves differently from stocks and provides a safety cushion in tough SHINE IS CHANGING, NOT FADINGIn the end, gold is not disappearing from Indian households. It still gives comfort when markets fall or inflation eats away savings. But it's clear the way people buy gold is bangles to bytes, India's gold story is being rewritten, and this time, the locker might just be a smartphone.- Ends
Time of India
29-06-2025
- Business
- Time of India
How to recover home loan interest through smart investing
Taking a loan is often considered detrimental to one's financial well-being, primarily due to the burden of paying interest on the borrowed capital, which often impacts one's financial plan. Most experts, therefore, advise against opting for a loan to buy an expensive asset and rather suggest accumulating the money needed before making such a purchase. While such advice might be appropriate when it comes to purchases that are classified as 'wants', for things that are classified as 'needs', it's often difficult to avoid availing a loan. A house purchase is a classic example - many people who value the security and stability that comes with owning a house often do not mind availing a loan to buy a house. However, this doesn't take away the pain of making interest payments over the tenure of the loan, which often tends to be quite long in case of a home loan . For example, if you take a loan of ₹20 lakhs over 20 years at an interest rate of 9% p.a., the total interest amount that you will end up paying over a 20 year period will in fact be higher than the amount you borrowed. The chart below shows the break up of the principal repayment and interest payment on such a loan. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Play War Thunder now for free War Thunder Play Now Undo (Author of the article Nilesh D Naik is Head of Investment Products, (PhonePe Wealth))
Economic Times
28-05-2025
- Business
- Economic Times
Defence sector based mutual funds rally up to 60% in 3 months. Will the momentum continue?
Defence sector based mutual funds have rallied upto 60% in the last three months. There are around six funds in the category including active and passive and gave an average return of 57.70% in the same period. Three schemes in the category gave over 60% return. Motilal Oswal Nifty India Defence ETF offered the highest return of around 60.49% in the last three months, followed by Motilal Oswal Nifty India Defence Index Fund which gave 60.23% return in the same period. Also Read | Defence ETFs gain 17% in one week. Should you add to your portfolio? Groww Nifty India Defence ETF and Aditya Birla SL Nifty India Defence Index Fund gave 60.12% and 59.96% returns respectively in the similar time period. Groww Nifty India Defence ETF FOF gave 59.45% return in the mentioned time period. HDFC Defence Fund, the only active fund based on the defence sector, delivered 45.93% return in the mentioned period. Experts attribute this surge to a combination of strong earnings delivery by the sector constituents, policy momentum with increased capital allocation by the Indian government and trigger coming from actual use case of India's Defence Capability in recent India-Pakistan faceoff at borders.'Key holdings in defence index funds reported strong earnings growth. The Indian defence budget allocation for FY25 has maintained a sharp focus on indigenization. Capital outlay of Rs 1.72 lakh crore continues to support new orders. Defence exports reached an all-time high of Rs 21,083 crore in FY24 (up 12% YoY), reflecting rising global demand for Indian defense manufacturing. This surge in earnings, coupled with a policy push and a favorable geopolitical backdrop, led to substantial price rerating and fund outperformance,' said Atul Shinghal, Founder and CEO, Scripbox. In addition to these factors, another expert adds that Defence funds have benefited from the recent surge in prices of defence stocks. Defence stocks have been on the rise in recent months after they were hit badly during the sell-off earlier this year. 'Many countries around the world, including India are ramping up their military capabilities, leading to increased defence spending. In India, this trend was further strengthened post the Operation Sindoor, as the Indian government plans to further improve our defence capabilities,' said Nilesh D Naik, Head of Business – Investments, the last six months, defence based passive funds returned 34% with Motilal Oswal Nifty India Defence ETF being the topper as the fund delivered 34.22% return in the last six months, followed by Motilal Oswal Nifty India Defence Index Fund which gained 33.73% in the same Nifty India Defence ETF FOF gave 33.35% in the last six months. HDFC Defence Fund, the only active fund based on this sector, gave 15.86% return in the same period. Also Read | HDFC Defence Fund increases stake in HAL, Solar Industries, and 4 other stocks in April Despite seeing the historical stellar performance by these funds, experts don't recommend investing in these sectoral funds. Shinghal of Scripbox mentions that despite strong sector fundamentals, current valuations are stretched as the trailing P/E ratio of the Motilal Oswal Nifty India Defense Index stands at a steep 61.35x, while the P/B ratio is 13.22x—significantly higher than broader market averages. which in turn indicates that the future growth might be already priced further adds that the Sharpe Ratio is negative (-0.07), indicating poor risk-adjusted return over recent volatility, despite high absolute returns and the index has 77.5% exposure to mid and small caps, which increases vulnerability to sharp corrections during risk-off sentiment willing to allocate or have existing investments in these funds can follow the strategy Shinghal shared. He mentioned that existing investors should hold and consider profit booking in a staggered manner, new investors should avoid fresh lump-sum allocations and tactical SIPs may be considered only on 10–15% corrections, and lastly the total allocation to defence sector should be between 2-4% and should not exceed 4% of total equity the other hand, Naik advices that thematic funds such as this are typically meant for seasoned investors who have their core portfolio in place and who want to take a tactical bet based on their views on a specific sector or theme. 'With recent rally in defence stocks, many of them have now recovered significantly and are trading at close to their all time highs. While the long term defence sector story seems strong, investors should be extremely cautious while investing in such funds post this rally, given the current valuations,' he earlier analysed that in a week's time, defence sector based ETFs have gained upto 17% in one week's time. The focus on defence stocks came after reports that the Modi government has called a meeting with defence makers post the recent India-Pakistan faceoff at the stellar performance of defence funds, Shinghal comments on the outlook for the sector and mentions that while India's long-term defense growth story is intact, current valuations do not offer a favorable risk-reward for fresh allocations and investors are advised to retain moderate exposure (up to 4%), book profits where returns have exceeded expectations, and re-enter during valuation corrections or policy-driven should always choose a scheme based on 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
28-05-2025
- Business
- Time of India
Defence sector based mutual funds rally up to 60% in 3 months. Will the momentum continue?
Defence sector based mutual funds have rallied upto 60% in the last three months. There are around six funds in the category including active and passive and gave an average return of 57.70% in the same period. Three schemes in the category gave over 60% return. Motilal Oswal Nifty India Defence ETF offered the highest return of around 60.49% in the last three months, followed by Motilal Oswal Nifty India Defence Index Fund which gave 60.23% return in the same period. Best MF to invest Looking for the best mutual funds to invest? Here are our recommendations. View Details » by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Hoa Binh: Unsold Furniture Liquidation 2024 (Prices May Surprise You) Unsold Furniture | Search Ads Learn More Undo Also Read | Defence ETFs gain 17% in one week. Should you add to your portfolio? Groww Nifty India Defence ETF and Aditya Birla SL Nifty India Defence Index Fund gave 60.12% and 59.96% returns respectively in the similar time period. Groww Nifty India Defence ETF FOF gave 59.45% return in the mentioned time period. Live Events HDFC Defence Fund , the only active fund based on the defence sector, delivered 45.93% return in the mentioned period. Experts attribute this surge to a combination of strong earnings delivery by the sector constituents, policy momentum with increased capital allocation by the Indian government and trigger coming from actual use case of India's Defence Capability in recent India-Pakistan faceoff at borders. 'Key holdings in defence index funds reported strong earnings growth. The Indian defence budget allocation for FY25 has maintained a sharp focus on indigenization. Capital outlay of Rs 1.72 lakh crore continues to support new orders. Defence exports reached an all-time high of Rs 21,083 crore in FY24 (up 12% YoY), reflecting rising global demand for Indian defense manufacturing. This surge in earnings, coupled with a policy push and a favorable geopolitical backdrop, led to substantial price rerating and fund outperformance,' said Atul Shinghal, Founder and CEO, Scripbox. In addition to these factors, another expert adds that Defence funds have benefited from the recent surge in prices of defence stocks. Defence stocks have been on the rise in recent months after they were hit badly during the sell-off earlier this year. 'Many countries around the world, including India are ramping up their military capabilities, leading to increased defence spending. In India, this trend was further strengthened post the Operation Sindoor, as the Indian government plans to further improve our defence capabilities,' said Nilesh D Naik, Head of Business – Investments, In the last six months, defence based passive funds returned 34% with Motilal Oswal Nifty India Defence ETF being the topper as the fund delivered 34.22% return in the last six months, followed by Motilal Oswal Nifty India Defence Index Fund which gained 33.73% in the same period. Groww Nifty India Defence ETF FOF gave 33.35% in the last six months. HDFC Defence Fund, the only active fund based on this sector, gave 15.86% return in the same period. Also Read | HDFC Defence Fund increases stake in HAL, Solar Industries, and 4 other stocks in April Despite seeing the historical stellar performance by these funds, experts don't recommend investing in these sectoral funds. Shinghal of Scripbox mentions that despite strong sector fundamentals, current valuations are stretched as the trailing P/E ratio of the Motilal Oswal Nifty India Defense Index stands at a steep 61.35x, while the P/B ratio is 13.22x—significantly higher than broader market averages. which in turn indicates that the future growth might be already priced in. He further adds that the Sharpe Ratio is negative (-0.07), indicating poor risk-adjusted return over recent volatility, despite high absolute returns and the index has 77.5% exposure to mid and small caps, which increases vulnerability to sharp corrections during risk-off sentiment phases. Those willing to allocate or have existing investments in these funds can follow the strategy Shinghal shared. He mentioned that existing investors should hold and consider profit booking in a staggered manner, new investors should avoid fresh lump-sum allocations and tactical SIPs may be considered only on 10–15% corrections, and lastly the total allocation to defence sector should be between 2-4% and should not exceed 4% of total equity exposure. On the other hand, Naik advices that thematic funds such as this are typically meant for seasoned investors who have their core portfolio in place and who want to take a tactical bet based on their views on a specific sector or theme. 'With recent rally in defence stocks, many of them have now recovered significantly and are trading at close to their all time highs. While the long term defence sector story seems strong, investors should be extremely cautious while investing in such funds post this rally, given the current valuations,' he added. ETMutualFunds earlier analysed that in a week's time, defence sector based ETFs have gained upto 17% in one week's time. The focus on defence stocks came after reports that the Modi government has called a meeting with defence makers post the recent India-Pakistan faceoff at borders. Post the stellar performance of defence funds, Shinghal comments on the outlook for the sector and mentions that while India's long-term defense growth story is intact, current valuations do not offer a favorable risk-reward for fresh allocations and investors are advised to retain moderate exposure (up to 4%), book profits where returns have exceeded expectations, and re-enter during valuation corrections or policy-driven consolidations. One should always choose a scheme based on risk appetite, investment horizon, and goals. 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.
India Today
24-04-2025
- Business
- India Today
Gold vs mutual funds: What should you invest in for better returns?
If you're thinking about where to put your money, whether in gold or mutual funds, then you're not alone. Many people wonder which of these two options can give better returns right now. Both are popular, both have their own strengths, and both work A SAFE HAVEN IN TOUGH TIMESGold is often seen as a safe investment. When markets are shaky or inflation rises, many investors turn to gold. That's because gold tends to hold its value and even grow when other assets to CA Ruchika Bhagat, MD, Neeraj Bhagat & Co., 'Gold, traditionally seen as a safe-haven asset, can be a good hedge against inflation and economic uncertainty. Through digital options like Sovereign Gold Bonds (SGBs) or Gold ETFs, investors can systematically invest in gold with ease.' The yellow metal recently surpassed Rs 1 lakh amid growing tension around the world and trade war between the US and to Nilesh D Naik, Head of Investment Products, (PhonePe Wealth), 'Given the recent developments around trade tariffs, dollar weakening and the geopolitical uncertainty, gold has regained the spotlight.'But here's the catch, gold doesn't pay you any interest or dividends. You earn only when the price goes up, and you sell it at a profit. Also, gold prices can be unpredictable in the short term. They may rise quickly and drop just as long-term returns have historically lagged behind equity mutual funds, and it doesn't generate income, only capital appreciation,' said CA Ruchika FUNDS: A GROWTH-ORIENTED CHOICEOn the other hand, mutual funds, particularly equity funds, are linked to the stock market. When the market does well, your mutual fund investment can grow faster than gold. Over the long term, equity mutual funds have given strong returns, often beating inflation and other traditional Ruchika Bhagat stated, 'Mutual funds, especially equity-oriented ones, offer exposure to a diversified portfolio of stocks, managed by professionals. Over the long term, they tend to outperform gold in wealth creation, thanks to the power of compounding and market growth. SIPs in mutual funds are particularly effective for disciplined investing, rupee cost averaging, and harnessing market volatility.'TAX IMPLICATIONS: GOLD AND MUTUAL FUNDSCA (Dr) Suresh Surana said, 'Prior to 23rd July 2024, if gold capital assets are sold within a holding period of 36 months, the gains are treated as short-term capital gains and taxed at the individual's applicable marginal slab rates. If such asset is held for more than 36 months, the gains qualify as long-term and are taxed at 20% u/s 112 with the benefit of indexation.'advertisementOn the other hand, if you hold listed equity mutual fund units for over 12 months before selling, the profits are treated as long-term capital gains; otherwise, they're considered short-term gains, he added.'The short-term capital gains would be taxed at the rate of 15% (enhanced to 20% w.e.f. 23rd July 2024) u/s 111A of the Income Tax Act ('IT Act'). The long-term capital gains are taxed at 10% (enhanced to 12.5% w.e.f. 23rd July 2024) u/s 112A of the IT Act provided such long-term capital gains exceed the threshold limit of Rs. 1.25 lakh in a financial year (previously Rs. 1 lakh prior to Finance (No. 2) Act 2024),' Surana LOOKING BETTER RIGHT NOW?At the moment, gold is performing well because of global worries and inflation concerns. But experts believe that if the market becomes stable and interest rates fall, mutual funds, especially equity ones, could bounce back strongly.'For most investors, mutual funds should be the core SIP choice, especially for long-term goals like retirement or children's education. Gold can be a complementary asset, perhaps 5–10% of your portfolio, for diversification and downside protection,' said added, 'Ultimately, a balanced approach aligned with your risk profile and time horizon works best. Speak with a financial advisor to tailor your SIP strategy accordingly.'advertisementConversely, if you want safety and already have other high-risk investments, gold might work well as a D Naik, 'While equity mutual funds are known to offer a better long-term return potential over the long run, gold helps in hedging against inflation and can potentially outperform all other asset classes during times of global uncertainty.'He added, 'For gold exposure, gold ETFs or gold mutual funds may be a better choice for investment compared to physical gold due to their cost efficiency, convenience and liquidity. A 10-15% exposure to gold is typically considered to be ideal for most investors. Given the current equity valuations and the run-up in gold prices, it may be advisable to take such exposure systematically via SIPs, to reduce the impact of any short-term volatility.'However, the best choice depends on your goals and how much risk you're comfortable with. Bhagat believes a well-balanced plan based on your risk appetite and time frame works best, and a financial advisor can help you build the right Reel
