HSBC MF has launched its Gold ETF and FOF, filling a key gap in their product portfolio – especially for investors who wanted a direct exposure to gold and not an indirect one through a multi asset allocation fund.
Gold is seeing a significant correction after a heady bull run in 2025. Ankur believes it is futile to try and time your purchases of gold.
For Indian investors, gold has done splendidly as a currency and inflation hedge – and short term ups and downs in its prices should not distract investors from why they ought to own gold.
He also makes an important distinction between physical gold in the form of jewellery that most Indian households have vs gold as part of your financial portfolio:
- The former is an emotional, intergenerational bond – we don’t track gold prices and trade in our jewellery. Treat this as an expense to satisfy an emotional need, not as an asset.
- The latter plays an important role as a hedge and diversifier in your financial portfolio, which will be subject to the usual periodic rebalancing like the rest of your portfolio. Treat this as you would treat other assets in your financial portfolio.
Gold is thus both an expense and an asset – investors must clearly segregate the two streams of gold holdings they have and treat them very differently.
He advocates at least 5-7% of your financial portfolio to be held in gold funds.