Gold Investment Strategy in 2025

Gold remains a cornerstone of Indian investment portfolios. But with multiple options available, how do you choose? Let's compare physical gold, gold ETFs, and gold mutual funds.

Why Gold Investment Matters

• Inflation hedge: Protects purchasing power
• Portfolio diversification: Low correlation with stocks
• Risk reduction: Defensive asset during market downturns
• Cultural significance: Part of Indian investing tradition

Physical Gold: Traditional Approach

Pros: Tangible asset, no counterparty risk, cultural appeal

Cons: Storage costs, insurance, purity concerns, illiquidity

Best for: Long-term investors seeking tangible wealth

Gold ETFs: Modern Solution

Pros: Easy to buy/sell, transparent pricing, minimal costs

Cons: Market hours only, counterparty risk, no physical possession

Best for: Active investors seeking flexibility

Gold Mutual Funds: Professional Management

Pros: Professional management, diversified approach, tax efficiency

Cons: Higher expense ratios, fund manager dependency

Best for: Passive investors wanting expert management

Recommended Allocation

Keep 5-10% of your portfolio in gold. This provides adequate diversification without excessive exposure.

Contact our advisors for personalized gold investment recommendations.