Going for Gold
Gold’s Role in an Investor’s Portfolio
Gold has become a more popular portfolio diversification tool with investors in the past few years, driven largely by geopolitical tensions and interest rates, among other factors. Central banks have increased their gold reserves, and gold ETFs have enjoyed strong inflows. In fact, assets under management (AuM) in gold funds and ETFs surpassed INR 650 billion (USD 7.4 billion) by the second quarter of 2025—a more than sixfold increase from INR 100 billion in early 2020. These funds witnessed record inflows on INR 50 bn in the first quarter of 2025. While gold can be considered a safe-haven asset to buffer against risk, it does have its drawbacks. Morningstar’s latest report examines the various gold investment strategies an investor can take to gain exposure to it beyond holding physical gold, including the pros and cons of investing in gold, and more. Download the report to understand how to incorporate gold into your investment portfolio.
