More glitter: Multi-asset allocation funds burnish gold's safe-haven appeal

Worth its weight in Gold: Saw portfolio increase of 1-6 percentage points in November-December 2022

Abhishek Kumar Mumbai
Gold, Precious metal

Photo: Bloomberg

Multi-asset allocation fund managers have raised the allocation towards gold in the past few months, given the optimistic outlook for the yellow metal amid a slowdown in the global economy.
An analysis of multi-asset portfolios shows that a majority of the schemes have raised the weight of gold in their portfolios between 1 percentage point and 6 percentage points in the November-December 2022 period.
“We have decreased our directional equity portion meaningfully in the past few months due to higher valuation. Exposure to gold has gone up as a shift in the interest-rate cycle or expectations of it have historically increased the attractiveness of gold as an asset class,” says Devender Singhal, executive vice-president, fund management research, Kotak Mahindra Asset Management Company (AMC).

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First Published: Jan 30 2023 | 6:10 AM IST

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