Thank you for your suggestion on Small Cap. The plan as I have mentioned in my earlier post is to have 50% allocation in Fast Growers, which will be mainly Small & Mid Caps. In Defense, I have 3% allocation in DCX Systems (which was a a technical call). This will increase with conviction & the company delivering as per its plan.
I have a longer term & different view on Gold. Gold as per me should be kept in physical form as the ultimate form of financial security in times of not only doom-gloom (eg, 2008 Subprime Crisis, 2020 Covid), but also unexpected and unforeseen social unrest (eg: think 2022 Ukraine War for Ukrainians or other countries undergoing internal or external problems). I am not expecting/wishing that we will see such situation in India in our lifetimes, but if it happens, Gold being a ‘store of value since ages’ will be highly useful when all else (fiat currency, demat shares, etc) will fail.
I have tabulated three data points: 24 carat Gold rate, Inflation & Sensex values since FY2002 and I can clearly see a negative correlation between ‘Inflation adjusted Gold return’ vs ‘Inflation adjusted Sensex returns’ for multiple chunks of years. So, Gold returns will be high when Financial Market return will be low and vice versa.
But for now, we are in a healthy growing economy, so my all focus is on getting the target return till 2030 which will come mainly through financial markets.
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