Union MF has launched its Gold ETF and Gold FoF to enable investors to encourage investors to allocate a sizeable portion of their portfolios to gold, with a fund vehicle of their choice.
Sanjay says gold deserves much more than a token 5-10%allocation that most experts advocate and makes a strong case for as much as15-25% of investor portfolios to be allocated to it.
Since 2000, gold has delivered a CAGR of 12.5% - in line with equity markets. In these 25 years, between equity, debt and gold, equity outperformed 11 years, gold 9 years and debt 5 years.
Gold has been an excellent hedge against currency depreciation over time and has proved a useful asset to own in times of global uncertainty – like what we are witnessing today.
Changed geo-political situation since 2022 further accentuated by recent tariff concerns has created an uncertain global economic environment, which has brought in new long term buyers into gold – the largest being central banks across the world.
The fund house’s conviction in gold as a strategic asset class beyond just a currency hedge influenced a larger-than-peer group allocation to gold (20-22%) in their new Multi Asset Allocation Fund.
Sanjay says with their MAAF and now a gold ETF and gold FoF, Union MF is giving investors a variety of options to take their gold allocations up to at least 15% and perhaps all the way to 25% of portfolios, depending on individual risk appetites and circumstances.