InvestorQ : Has gold emerged as an asset class in the Indian investment scenario?
Chandralekha Desai made post

Has gold emerged as an asset class in the Indian investment scenario?

Answer
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Dawn Cherian answered.
1 year ago


When we talk of asset classes in investment, the normal focus is on debt and equities. Gold is still not seen as an investment or as part of the financial plan. People buy gold more out of emotional reasons or due to old being considered a safe holder of value over the long term. But things are changing and financial planners are increasingly imputing a part of your total portfolio to gold. That is normally 10-15% of your overall portfolio and it works as a hedge against uncertainty in the global scenario.

Nowadays, your financial plan also provides for some share of hybrid products to combine the benefits of debt and equity in a more customised format. The big question is should gold be included as part of your financial plan? Gold as an investment is different from gold as a life style spending. Remember, when we talk of gold we are not talking about the gold in your jewellery; but we are talking of gold as an investment. This includes gold in the form of bars or gold in the form of e-gold or even in the form of gold bonds. In short, any product that helps you to mirror the price of gold can be included as gold investment. Most financial planners are beginning to accept gold as a useful hedge to the overall portfolio to ensure that the value of the portfolio can be protected in tough macroeconomic conditions.