Key Highlights
- Gold in its purest form or paper form is an asset class that can help hedge against inflation, but should only make up 10% of a retirement portfolio.
- Equity and fixed income funds should make up the rest of a retirement portfolio, with exposure to equities even post-retirement for long-term growth potential.
- Mutual funds can provide diversification and professional management, making them a more accessible and efficient option for individual investors.
f you’re nearing retirement or are already retired, you may be considering the role of gold in your investment portfolio. In our recent webinar with Franklin Templeton, “Gold Vs Mutual Funds” led by financial planner Mr. S. Sridharan, explored the historical relevance and investment value of gold, the use of gold as a hedge against inflation, and the allocation of assets in a retirement portfolio. Let's delve into the valuable strategies and tips shared in this session and explore key points to consider when incorporating gold as an asset class, along with the importance of diversification and professional management offered by mutual funds.
Mr. S. Sridharan is an esteemed financial professional with 15 years of experience as an Independent Financial Advisor (IFA). He has been honored with the title of ‘Associate Financial Planner’ in retirement planning and employee benefits from the Financial Planning Standards Board. A prolific writer, Sridharan contributes to renowned personal finance magazines like Moneycontrol.com, Financial Express, Times of India, UTI Swatantra, and Nanayam Vikatan.
Key Highlights from the Webinar:
💰 Gold has long been considered a safe and valuable asset, particularly for its ability to hedge against inflation. However, when it comes to retirement planning, it’s important to balance the allocation of assets. Gold in its purest form or paper form can play a role in hedging against inflation, but it should make up only a small portion, around 10%, of a retirement portfolio.
📈 Equity and fixed income funds should make up the rest of a retirement portfolio, allowing for long-term growth potential and diversification. In fact, exposure to equities, even post-retirement, can be beneficial for maintaining an inflation-adjusted return over a longer retirement period.
⚖️ Mutual funds can provide diversification and professional management, making them a more accessible and efficient option for individual investors compared to direct investment in stocks.
📉 While capital loss in sovereign gold bonds is possible in situations of short-term price correction, historical data shows positive returns over the long term.
📚 Mutual funds can provide diversification and professional management, making them a more accessible and efficient option for individual investors compared to direct investment in stocks.
In wrapping up, remember that understanding the historical relevance of gold, its role as a hedge against inflation, and its place in a diversified retirement portfolio is crucial for effective retirement planning and investment management. By carefully considering the role of each investment option, individuals can build a well-diversified and optimized investment portfolio.
This webinar is brought to you by Franklin Templeton. For more such classes on investing, mutual funds, and more, download our app from Google Playstore or connect with our team on WhatsApp.
