Gold vs Equities

Historically, during Indian economic downturns equities fall out of favour while gold, which is generally considered as a traditional safe-haven asset, outperformed NIFTY50.
Investing in Gold and Equities is essential for a strategically well-diversified long-term portfolio in order to provide stability to returns and safeguarding the wealth during economic turmoil.

DOES INVESTMENT IN GOLDEN OPPORTUNITY EXISTS?

The Yellow Metal serves as an Inflation hedge in the long-run, with almost all the currencies having depreciated in value relative to gold.
As of Dec-24, India stands in the top 10 countries in the world in terms of gold reserves. The RBI is actively bolstering its gold holdings, trying to make it one of the largest buyers globally, as a part of its Reserves Management Strategy.
The Indian Equity Market is witnessing an unidirectional (downfall) movement since Sep-24, majorly due to diversion of funds to US Markets, frothy equity valuations, geopolitical tensions, high inflation with depreciating rupee and economic uncertainties.
Considering the historical performances of gold during the financial crisis and the present Indian Stock Market situations along with the government initiative to increase the holdings, making gold as a compelling diversification tool can be a good option.