For the first time this month, gold has crossed the level of Rs 60,000. If we talk about the last one year, then gold has given a return of about 15 percent. While the stock market or rather the Sensex has been flat.
If an investor’s investment is diversified, then the share of gold in it is slightly less. If we say it in figures then between 10 to 20 percent. While the share of equity is slightly higher in this entire portfolio, then the number of debt comes later. At present, Gold is avenging the injustice being done to him.
For the first time this month, gold has crossed the level of Rs 60,000. If we talk about the last one year, then gold has given a return of about 15 percent. While the stock market or rather the Sensex has been flat. At present, the numbers of Gold and Sensex are being seen the same. Now the question is that among these two, who will touch the level of one lakh first?
Gold returns better than equity
Now when financial instability is being seen all over the world and inflation is also at its peak. If the condition of the economy is bad, then there is no better asset than gold to avoid it and get good returns in the least time. Experts say that at present, the returns of gold are being seen better than the equity market and it is likely to continue.
Manish Chaudhary, Research Chief at Stoxbox, said in a media report that major central banks around the world have taken the risk of a slowdown in global economic growth by drastically increasing policy rates, which should support gold. Apart from this, the central banks of most countries of the world have increased the demand for gold. In such a situation, further increase in the price of gold can be seen.
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First sensex will reach one lakh level
On the other hand, the Bombay Stock Exchange’s main index Sensex is currently seen struggling around 57,000-58,000 points, it has the potential to reach one lakh mark before Gold. In the media report, Narendra Solanki says that the Sensex is definitely going to touch the 1 lakh mark in the future, but how long it will touch this figure will depend on the overall growth. Rohan Mehta of Turtle Wealth PMS said in a media report that the Sensex gives almost double the return of 12 to 15 per cent, compared to the 7 to 8 per cent return seen in gold.
Also, the way India’s growth is being seen, Sensex will not take much time to reach one lakh mark. In comparison, it may take some time for gold to reach Rs 1 lakh. If gold reaches this level, then it will be possible only when the world goes into extreme panic zone. This panic zone can be anything, big geo political tension, financial crisis and an epidemic like Kovid.
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What advice are the experts giving
In the current quarter, FIIs sold Indian equities worth $3.5 billion. After which the Sensex is now trading below its 10-year average PE level. Turmoil is also being seen in the global market. Because of which gold remains an attractive asset. According to experts, starting with high risk for debt and gold in 2023 and moving towards better stock selection through equity would be a wise move. Until there is clarity on the global economic front, it is better to stay away from high beta stocks.
So what should be the ideal asset allocation strategy in current times? By the way, under the standard 60-30-10 portfolio allocation rule, it is seen in 60 percent equity, 30 percent debt and 10 percent gold. According to Divam Sharma, who runs Green Portfolio PMS, if you are looking for an allocation of at least 2 years, then the current time is in favor of equity allocation. He said that for a moderate risk profile, we would suggest an allocation of 70 per cent equity, 15 per cent debt and 15 per cent gold at this time.
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