Understanding Gold and Silver ETFs
Performance in 2024
Gold and Silver ETF have both shown average returns of around 20% and 19.66% in 2024, with a total of 31 funds in both categories. Among the silver ETFs, HDFC Silver ETF had the highest return at 22.02%, while UTI Silver ETF had the lowest at 18.46%.
Factors Affecting Performance
Gold prices have been driven higher by market fear and central banks buying up gold reserves. Silver prices have also increased due to high demand for semiconductor chips. When choosing between gold and silver ETFs, investors should consider the consistency of each asset class over time.
Expert Advice
Experts recommend understanding the historical performance of gold and silver ETFs over different periods. Equity has shown consistent returns over the last 25 years, outperforming fixed deposits. Gold ETFs have been around longer than silver ETFs, which entered the market in 2022.
Outlook for 2025
Experts suggest allocating only 10% of your portfolio to gold for exposure to commodities, while maintaining a positive outlook on equity. Increasing equity allocation to 80% in the long term is recommended. Gold and silver funds are used for portfolio diversification and stability, rather than consistent high returns.
Portfolio Diversification
If you have a large portfolio, consider investing around 10% in gold and/or silver. For beginners or those with small portfolios, this may not be necessary. Remember that these funds may not always offer high returns every year, but they can add stability to your portfolio.
Meet the Super Fund Manager Dominating 2024s Financial Market
Stay tuned for more updates and insights on the stock market! For more insights on investing in the Indian stock market, check out resources like Moneycontrol and NSE India.
(Disclaimer: The views and opinions expressed by experts are their own and do not represent the views of The Narayan Ventures)