This Akshaya Tritiya invest in the best gold mutual funds!

Gold is quite popular during festive events, especially on the pious occasion of Akshaya Tritiya. In this post, we will discuss the top gold funds in which you may invest on this pious occasion.

As you are well aware, we Indians have a strong affinity toward gold. Although we buy gold all year, there are a few occasions when we do so, such as Dussehra, Diwali, and Akshaya Tritiya. People trust gold more than any other investment because they feel it will aid them in an emergency. However, things are changing, and individuals are looking into alternative investment opportunities.

How has gold performed historically?

As you can be seen in the graph above, gold has traditionally moved fairly nicely. If we look at its compounded annual growth rate (CAGR) over 58 years, it is over 12 per cent, while its median five-year rolling returns were 8.5 per cent. This demonstrates that gold is a useful inflation hedge, but it does not build wealth as an individual investment.

On the auspicious occasion of Akshaya Tritiya Pritam Patnaik, Head - Commodities, HNI & NRI Acquisitions, Axis Securities shared his views on gold, “This Akshaya Tritiya, which coincides with Eid, could be a perfect time for investors looking for a window of opportunity to start investing in Gold. Recently, Gold prices have come under pressure as the Federal Reserve looks almost certain to approve a 50- basis point rate hike at the May policy meeting on Wednesday, the highest hike in over two decades. During periods of high inflation, recession, and geopolitical turmoil, gold has been the asset of choice as the ultimate safe haven bet. Of late, USD has diverted some of the flows, but gold continues to be the largest benefactor. This cycle could play out similarly. One can look at investing a part of their allocation during the auspicious date and subsequently allocate the balance as and when the prices dip, which will be around the dates of Fed policy rate announcements. A staggered approach to investing is the most prudent way forward for gold.”

However, gold should be a component of your core portfolio since it protects you during unpredictable times. As a result, having gold in your portfolio is advised. It should, however, make up no more than 5 per cent to 10 per cent of your whole portfolio. Investing in gold as part of your satellite portfolio should be done tactically.

There is no better way to gain exposure to gold than through gold mutual funds. Physically investing in gold is not encouraged unless you are purchasing it in the form of jewellery for personal consumption. Digital gold investing through mutual funds offers a lot of flexibility and allows you to invest directly in the spot market. In this post, we have listed the top gold mutual funds to consider.