Axis MF has launched its Gold and Silver Passive FoF – a precious metals solution that tactically allocates into underlying gold ETF and silver ETF based on evolving market dynamics, with a minimum of 35% in each metal’s ETF.
The fund is likely to initially allocate about 60% to gold and 40% to silver.
Gold in INR terms has a long term track record of performing in line with or better than equity with lower volatility.
Looking ahead, geopolitical realities should keep gold well bid by Central Banks seeking to diversify their reserves and more recently by investors in the West as the largest money managers there are now advocating a shift from the traditional 60-40 portfolios to 60-20-20, swapping some debt allocations for gold.
Silver’s claim to a position in your portfolio is its negative correlation to debt and muted correlation to equity – apart from the growing new age industrial usage which is accentuating a demand-supply gap –thus auguring well for prices.
Vandana says gold and silver should be part of any investor’s asset allocation mix – not only those who already have sizeable portfolios that now can do with some diversification, but also young earners who must start diversifying right away.
For those who yet do not have gold and silver allocations in their financial portfolios, Vandana says its time to start now – even with a minimal 5% allocation to kick off your journey into precious metals. A fund like the new Axis Gold and Silver Passive FoF could be a great way to begin this journey.