Let asset allocation, not price direction guess, guide decision on gold
Published by Business Standard
Abhishek Kumar's role: Quoted
Abhishek Kumar suggested selling gold only to meet a need for funds or to rebalance, and shared pointers on choosing gold ETFs, buying sovereign gold bonds on exchanges, and weighing early redemption against holding to maturity.
What Abhishek Kumar said
Should I sell gold after a big price rally?
I suggest selling gold only if you need the money or your portfolio needs rebalancing, not because of where you think the price is headed. Any decision should reflect your financial goals, how much risk you can tolerate and how much gold you already hold across your portfolio.
What should I look at when choosing a gold ETF?
When comparing gold ETFs, I look for four things: a low expense ratio, a small tracking error, good liquidity on the exchange and a large fund size. Together these tell you how cheaply and closely the fund follows the gold price and how easily you can buy or sell its units.
Is it worth buying sovereign gold bonds on the stock exchange?
Buying sovereign gold bonds on the exchange makes sense to me only when they trade close to or below the current gold price. If they are quoting at a high premium, I would avoid them. Before you buy, also check how much tenure is left on the bond and how easily it can be traded.
In our words, from what he said in the piece. General information, not personal advice.
More of Abhishek's views on mutual funds
With gold prices near ₹1 lakh, the article looks at what is driving the rally and what could slow it, including trade and tariff uncertainty, central bank buying and jewellery demand. It suggests investors base decisions on their existing gold allocation and discusses gold ETFs and sovereign gold bonds bought from the secondary market.
Publisher source
Let asset allocation, not price direction guess, guide decision on gold