ETMarkets Good Speak | 10–15% allocation to gold and silver is sufficient for portfolios: Sandeep Bagla
Nonetheless, amid rising costs and speak of a commodity supercycle, consultants are cautioning in opposition to over-allocation.
In an interplay with ETMarkets Good Speak, Sandeep Bagla, CEO of TRUST Mutual Fund, says that whereas gold and silver play an vital position in portfolio diversification, buyers ought to restrict their publicity to 10–15% and keep away from drifting away from their core asset allocation within the pursuit of short-term positive factors. Edited Excerpts –
Q) Thanks for taking the trip. It appears like there’s some nervousness on D-Road – is it due to Finances or geopolitical issues. How ought to buyers decode?
A) Equities have bounced again a bit on again of expectations of Finances bulletins and the India Europe commerce deal. Markets noticed a bout of correction as a consequence of excessive valuations and slowing progress. A number of shares underwent sharper worth correction.
Whereas RBI reduce charges, market yields truly rose. Excessive valuations can not maintain in absence of hope sustained earnings progress. Buyers want to elongate their holding interval time horizon and be affected person.
Q) There are 2 valuable metals which haven’t misplaced their sheen even in 2026 – Gold & Silver. We’ve got seen some volatility – how ought to one play this theme?
A) One ought to have 10-15% allocation in gold and silver and profit from the worth positive factors. Whereas the dear metals can go up as part of a commodity supercycle, one should resist the temptation to maneuver away from their asset allocationQ) The December quarter earnings are underway – what’s your tackle the earnings which have thus far?
A) Earnings are tepid, banks are doing alright, however most sectors are more likely to fall wanting elevated market expectations
Q) Hiring has taken again seat within the Indian Know-how sector. What’s your tackle the service area amid rupee depreciation, rise of AI and international slowdown?
A) IT is more likely to be a gentle however lack lustre sector to spend money on. Mid cap IT shares have a tendency to point out better promise
Q) How ought to one play the small & midcap theme?
A) Small and mid caps embody near 1000 investable shares having market cap bigger than Rs 2000 crs. One should make investments by Mutual fund schemes in diversified effectively researched portfolios.
Individuals make the error of constructing direct investments with out enough data and correct danger understanding. Choose mid and small caps will proceed to carry out effectively.
(Disclaimer: Suggestions, strategies, views, and opinions given by consultants are their very own. These don’t signify the views of the Financial Occasions)
