Gold is one of the oldest asset known to mankind. The price of Gold is
derived by the quantum of demand for the lustrous metal. T In market downturns,
Gold has always acted as a portfolio hedge and the recent pullback was no exception.
The longer corrections or wider corrections in the market improves the
effectiveness of Gold. Gold as a Commodity has shown that it is the only secure
refuge for investors in years 2008, 2011 and 2015. As per your risk profile,
the allocation of your portfolio to gold may be around 5% to 10% and this is
possible through a variety of instruments such as gold equity funds, sovereign
gold bonds, gold exchange-traded funds etc. As a safe haven, gold typically
benefits from the flight of quality flows. Gold has the widespread acceptance
and Indian households hold one of the highest quantities of gold in the world.
There are four advantages of Gold in any investor portfolio:
1.
Delivers
positive long term returns.
2.
Improves
Diversification.
3.
Especially
in downturns, it provides much needed liquidity.
4.
Enhances
portfolio performance through higher risk adjusted returns.
Gold is better than treasuries and stocks because it has gained over
four percent in less than three months (year to date). Gold has been the best-performing
asset classes year-to-date. Investors can actually enjoy price appreciation and
fixed interest rates if they buy Sovereign Gold Bonds (SGBs). The transaction
cost for gold ETFs is comparatively low but unlike gold bonds, gold ETFs cannot
be used as collateral for loans. Gold deserves a rightful place in the
portfolio of any investor.
Founded in 2005, ABans Group has grown from being
a trading house to a dynamic and diversified business group. We provide
expertise in Broking Services, Merchant Banking, Non-Banking Financial
Dealings, Gold Refining and Realty and Infrastructure. In a nut shell Abans
Group is a comprehensive Financial Services and Solution Provider, which aims
to provide an end-to-end financial solution to all its clients.
ABans Commodity
India Pvt Ltd (ACIPL), Founded by Mr. Abhishek Bansal is a SEBI registered Co,
ABans Group of Companies, Comprises of companies having businesses like
commodity trading, futures trading, gold futures and futures market, operating
on platforms like BSEL, MCX, NSEL and more, which constitute the Indian share
market.
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