'Joker in your portfolio': Radhika Gupta, MD and CEO of Edelweiss Mutual Fund, calls gold a surprise asset that protects investors when markets fall-and urges a steady, long-term approach over emotional investing.
Speaking on the "Mutual Funds Ki Baat" podcast, Gupta explained why gold deserves a permanent place in portfolios.
"Gold is like a joker in your portfolio. When equity markets fall, it protects you," she said. "Silver, on the other hand, is like mid-cap. It's industrial, precious, and far more volatile."
Edelweiss launched India's first Gold and Silver Fund of Funds a few years ago on Gupta's birthday. It struggled at launch. "Past returns were so poor that my team didn't want to include them in the pitch deck," she said. "We barely raised Rs 10 crore. Last month, we collected Rs 20 crore. The sentiment has changed."
Still, she warned against chasing performance. "Gold's recent rally isn't driven by retail investors. It's central banks viewing it as a store of value," Gupta said. "Silver had been undervalued. We predicted this rally last year."
Her advice: stay consistent and don't act on FOMO. "Ten to twenty percent of your portfolio in a gold and silver mix is good. But don't suddenly throw 50 percent into silver. I invest in gold and silver SIPs just like I do in equity funds. Why not treat them the same?"
Edelweiss is quietly preparing to launch a silver-only fund, doubling down on its conviction in long-term demand. "Timing the market is very difficult. It's better to think in terms of allocation rather than speculation," she said.
Gupta also shared a practical savings framework. "In your 20s, save 10 percent of your post-tax income. In your 30s, save 30 percent. In your 40s, start planning for retirement and save 50 percent," she said. "If 10 percent feels small, don't worry. Build the habit early-the rest follows."
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