ASSET ALLOCATION

I have recently invested 50 per cent in equities and also started an SIP on corporate debt MF. I am interested in investing some percentage in gold. Could you advise if global gold mutual funds would be a decent investment option? And what should be the time period of the SIP?

- Neetu Singh

Editor Responds : You have invested 50 per cent in equity along with investment in corporate debt fund via SIP. In my opinion, you should bring your debt allocation up to 40 per cent of your total portfolio and the remaining 10 per cent may be invested in gold funds. The purpose of having such a low investment in gold is that we recommend gold only for hedging purpose. Further, you should monitor your investments quarterly and rebalance your portfolio annually.