In today’s world, where things can be uncertain and money can go up and down easily, gold is still seen as a safe investment. In an interview with ETNow, Sanjay Bembalkar, who is Co-Head of Equity at Union Asset Management Company, talked about how important gold can be in your investment portfolio. He suggests that people should think about putting 15-25% of their money into gold, which could help make their investments more stable and diverse.
What are Gold ETFs?
Union AMC has recently created a Gold ETF Fund of Funds, which is designed to help investors diversify their money. Bembalkar says gold is special because it is rare and does not act the same way as stocks or bonds. This means that it can protect your investments when the market gets shaky. He mentioned, “Gold has different reasons for its value compared to stocks and bonds. This is why investors can benefit from it now and in the long run.”
How Much Should You Invest in Gold?
Bembalkar recommends that regular investors should put 15-25% of their investments into gold. Given today’s economic situation and India’s role in the global market, this percentage seems just right. In their own investment plan, Union AMC has decided to allocate 22% to gold.
Gold ETFs vs. Physical Gold: Why Choose Paper Gold?
Many people in India love owning physical gold, but Bembalkar points out the advantages of Gold ETFs, which are like owning gold on paper. Here are some of the benefits:
– No Emotional Attachment: Paper gold doesn’t have sentimental value, making it easier to sell when you need to.
– No Issues with Purity or Storage: You won’t need to worry about whether your gold is real or where to keep it.
– Easy to Buy and Sell: Gold ETFs are simple to trade, making it easier to manage your investments.
He explained, “When we own gold as ETFs, there are no emotional ties, and we avoid the stress about purity and storing it. This makes it a smarter choice.”
Why Gold Makes Your Portfolio Stronger
Bembalkar believes that Gold ETFs help in diversifying your portfolio. Gold and stocks usually move in opposite directions, which can help stabilize your investments when the market goes down. Bembalkar said, “Gold is a scarce resource with its own set of factors affecting its value compared to stocks and bonds. This quality makes it a fantastic asset for diversification, especially now.
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