Investment Planning

What should investors do in such times?
Note that gold as an asset class can be prone to volatility in the short term. Panicking at such times does not help. Instead, we need to adopt a few precautions to safeguard our investments. Invest for the long term - Gold as an asset class has the potential to deliver optimum returns in the long term (5-10 years or more). For instance, despite the volatility in 2013 (short term), gold has given 15% returns in the 10-year period ended December 31, 2013. Hence, investors should not sell their assets during such volatility but remain invested over the long term. Disciplined investments â€" Do not invest in a haphazard way; for example, you may invest in gold during festive periods, or maybe when you have some surplus money. Now, it may happen that the price of gold has increased during your time of investment (festive and wedding seasons may see a spike in demand and hence prices). Therefore, it is necessary to resort to a disciplined method of investment. With investment in gold now available through the paper form, investors can invest through systematic investment plans (SIPs).

How do SIPs help?
Investing in any asset class through SIP is an advantage, and the same is true while investing in gold too.

  • Market Overview by
    Mr. Navneet Munot,
    CIO, SBI Mutual Fund