Gold Glitters, Real Estate Holds: Why Smart Diversification Matters This Akshaya Tritiya
As gold prices approach ₹1 lakh per 10 grams, its safe-haven status has drawn fresh attention, especially amid market volatility. But while gold shines this Akshaya Tritiya, experts caution against going all-in on the yellow metal—and ignoring real estate or other asset classes.
Take Arjun Sharma, who invested ₹10 lakh in gold in 2015. A decade later, his investment grew nearly fourfold to ₹38.11 lakh, delivering a CAGR of 14.32%. In contrast, Priya Verma’s ₹30 lakh real estate investment saw her property value rise to ₹54 lakh, with ₹14.4 lakh in rental income—an overall CAGR of 11%.
Yet both investors face concentrated risks. Gold, while profitable, is volatile and doesn’t generate passive income. Real estate, though steady, is illiquid, comes with maintenance costs, and yields low rental returns.
“Gold and real estate can’t be your only bets,” says financial advisor Gaurav Goel. “Diversification is the key to managing market cycles.”
Data supports this: equity, real estate, gold, and debt show minimal correlation—making a blend of them crucial. Equities offer the highest long-term return (14.5%) but with high volatility. Gold is similarly volatile, while debt and real estate provide stability at the cost of lower returns.
By combining asset classes, a portfolio can target an 11% return with just 8.2% volatility.
Experts advise Arjun to explore equities and mutual funds for growth, while Priya should diversify her rental income into debt and equity for balance. Diversification isn’t just strategy—it’s survival.
