Gold's allure continues to captivate investors, but a recent panel discussion at the Moneycontrol Global Wealth Summit 2026 highlights the need for caution. The experts emphasize that while gold has a long-standing place in portfolios, investors should avoid the trap of chasing rallies. The discussion delves into the evolving role of gold, challenging common beliefs and shedding light on the complexities of this precious metal.
Kalpen Parekh, MD and CEO of DSP Mutual Fund, begins by acknowledging gold's enduring presence. With a history spanning millennia, gold's longevity is remarkable. However, Parekh urges investors to scrutinize the data more closely. While gold may appear to outperform equities over extended periods, a closer look at rolling returns reveals a different story. Parekh reveals that gold has outperformed equities in India only about 25% of the time on a five-year rolling basis, and globally, the figure is roughly 35%. This challenges the notion that gold consistently outperforms equities, urging investors to question their assumptions.
The panel also dissects the common belief that gold is a reliable hedge against inflation. Parekh's analysis reveals a surprising twist: gold performs well during inflationary periods only about 40% of the time. This finding underscores the importance of critical evaluation, as it contradicts the widely held belief that gold is a safe-haven asset in all economic conditions.
Swarup Mohanty, Vice Chairman and CEO of Mirae Asset Investment Managers, offers a cultural perspective on gold ownership in India. Traditionally, gold buying has been driven by cultural practices rather than price movements. However, Mohanty warns of a potential shift. The entry of institutional investors and financial products could disrupt this long-standing culture, urging investors to preserve the traditional approach to equity investments while maintaining cultural practices in gold ownership.
Vaibhav Porwal, co-founder of Dezerv, observes a recent trend in investor behavior. The surge in interest in precious metals, particularly gold, coincides with a shift away from equities after strong stock market performance. Porwal's firm noticed a rise in client inquiries around September and October 2025, with investors seeking to switch from equities to gold. This behavior raises concerns about investors chasing momentum rather than focusing on long-term fundamentals.
Parekh echoes these concerns, cautioning against aggressive allocation increases after a sharp rally in precious metals. He emphasizes the importance of using gold as a portfolio diversifier rather than a growth engine. Allocating around 5-10% to gold can provide a hedge against geopolitical or political uncertainty, but investors should avoid the temptation to chase rising prices.
The panel's consensus is clear: disciplined asset allocation is paramount, surpassing market timing. While gold retains cultural and financial significance, investors must exercise restraint and avoid the pitfalls of momentum-chasing. The discussion serves as a reminder that a balanced approach, informed by data and cultural understanding, is essential for navigating the complexities of gold investments in today's market.
