Maintain 5-10% allocation to gold to counter currency, inflation risks

Despite gold's tepid returns over the past 6 years, an allocation to it is essential to counter risks like currency depreciation and inflation

Investors often ask us for our outlook on gold and whether it’s a good time to invest in it. Our answer to their query invariably is that it is always a good time to invest in gold. The importance of having a 5-10 per cent allocation to this strategic asset in the portfolio can’t be emphasised enough. 

Beware currency risk: Many of us understand the importance of saving for a rainy day. We do so diligently through stocks, bonds or bank deposits, which is a good thing to do. But all these investment avenues are subject to underlying currency risk. This