Experts are of the opinion that the yellow metal could be considered as a valuable addition to an investor’s portfolio amid the market uncertainty marred by the pandemic. Wealth management expert Sachin Kapoor told HT’s business publication Mint that the added element of currency return with the asset return makes gold a less risky investment option for an Indian investor. Kapoor further pointed to the difference between interest rates of India and the US which is a driving factor of the currency of the higher interest rate country against that of the lower rate country. Historically, amid economic turmoil, gold has delivered positive returns when the equities face a slump, explains Kapoor. Over the years, gold has also earned the reputation of being a good portfolio diversifier, therefore, allocating some chunk of the portfolio towards gold makes sense.

Source: Hindustan Times July 24, 2020 04:39 UTC