Prashant Pimple, CIO Fixed Income, Baroda BNP Paribas MF
“ Historically, we have witnessed gold being an integral part of any portfolio, especially during times of uncertainty, and as a hedge against inflation. Even in current times we see gold as a haven against economic uncertainty, hedge against inflation, portfolio diversification and liquidity. Hence, we think that allocation to Gold in any form is a much-needed requirement.
In the recent past, precious metals have registered a fabulous rally mainly due to central bank interest in accumulation of reserves in form of precious metals. Going ahead also we expect gold, in addition to retail investor allocation will also remain core portfolio for many central banks around the world. However, near term outlook will depend on evolving global macro environment, liquidity, and inflation impact of the ongoing geopolitical scenario.
An Ideal channel for investing in gold, as Indians tend to prefer physical gold, while digital/paper gold is fast picking up. Allocating to gold in any form is crucial for any portfolio today. From ease of investment, monitoring, purity, cost benefit analysis and liquidity perspective we think digital form of gold via Gold ETF/ Gold fund of Fund and Multi asset allocation strategy is preferable over any form of physical gold.”
