Wealth Company’s initial set of fund launches have mobilized over Rs.2000 crores, of which the most satisfying aspect for Prasanna is that over 50% has come from B-30 locations.
He says there is clear appetite for new ideas and differentiated thinking from credible teams – as can be seen from the acceptance of Wealth Company MF across the country.
On the back of this acceptance and the strong distributor engagement efforts that the team has put in, the fund house has now come up with a couple of new fund launches – a multi asset allocation fund and a gold ETF / gold FoF.
Prasanna – an ardent student of cycles – says that cycles have become shorter and sharper now (4 yr cycles vs 8 yr cycles) and one should expect volatility to stay elevated perhaps until 2030-2032.
The India bull super cycle is tied to the demographic cycle – which will go into a decline phase only around 2045. All interim cycles until then are unlikely to disrupt the long term uptrend – perhaps until 2045.
Wealth Company’s gold fund launch comes at a time when Prasanna says gold is pausing after a good run to take a breather and preparing for the next leg up in what he says is a structural bull run that can last few more years.
When stock shifts from weaker hands to stronger hands, price starts moving disproportionately faster than incremental demand. This is exactly what’s happening with gold, as Central Banks continue to buy gold as part of their de-dollarization of reserves strategy.
Gold in INR terms has outperformed equity over 1yr, 5yrs, 10yrs, 20yrs and 30yrs timeframes, with significantly lower volatility and lower drawdowns.
Savvy investors who understand cycles and practice core and tactical asset allocation accordingly can consider investing into gold ETF or gold FoF to increase gold exposure to their desired levels.
Those who are building their portfolios and don’t consider themselves experienced cycle investors are perhaps better off investing in a multi asset allocation fund that has a material exposure to gold, as tactical decisions on relative attractiveness of asset classes is left to the fund manager.