Existing investors must book partial profits in gold to cut portfolio risks

New ones should build their allocation gradually upon corrections

Gold exchange-traded funds (ETFs) have given investors an average return of 48.7 per cent over the past year. Investors who have become overweight on the yellow metal (vis-à-vis their original allocation of 10 or 15 per cent of their portfolio) should book partial profits from time to time and bring their allocation back to the original level. If they allow themselves to become heavily overweight on the yellow metal, it will increase their portfolio risk. Whenever the bull-run in gold ends, their portfolio could take a beating.

Most experts today are of the view that the rally in gold is likely