CNBC Personal Finance Queries – When is the right time to invest in Gold?

Is it the right time to invest in Gold? Or should I stay invested in mutual funds?

If you want to invest in Gold then you can invest through Gold Funds or Gold ETFs. You should have a rational asset allocation to minimize the risk and optimize the returns on your investments. Exposure to Gold should be around 5% to 15% of your overall portfolio. Historically gold has provided you a shield against inflation. Investment in gold can help you preserve value of your investment. For 30 years period 1983 to 2013 the gold has given you a post tax rupee return of around 9.50%, which is slightly above the average inflation for the period. Gold prices fluctuate and hence you should invest systematically through the SIP route rather than in a lump sum. For SIP a Gold Fund is the most convenient. But if you want to invest one time then you can buy Gold ETF from the market.

Recommended Gold Funds: SBI Gold Fund, Reliance Gold Savings Fund
Recommended Gold ETF: Goldman Sachs Gold ETF Fund, R*Shares Gold ETF Fund


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