Gold, REITs and going global
Gold, real estate investment trusts and international funds can round out a portfolio. Each has a specific job and a specific cost.
Gold
Gold doesn't produce income, but it has historically held value in crises and when the rupee weakens, and it often moves independently of equity. A 5 to 10% allocation is common. Gold ETFs and gold funds avoid the making charges, storage and purity concerns of jewellery. No new Sovereign Gold Bonds have been issued since early 2024; existing ones still trade on exchanges.
- Indian equity (core)60%
- Debt20%
- International equity10%
- Gold and REITs10%
REITs and InvITs
Real estate investment trusts own income-producing offices and malls; infrastructure investment trusts own roads, power lines and pipelines. Both are listed, must distribute most of their cash flow, and let you own property-like assets with small amounts and daily liquidity.
Going global
India is a small share of the world's stock market value. International funds add exposure to global companies and to other currencies, which can cushion a falling rupee. Indian mutual funds face an industry-wide overseas investment limit set by RBI, so some international funds periodically pause new money. You can also invest directly abroad under the Liberalised Remittance Scheme, with tax collected at source above set thresholds.
Key takeaways
- 1Gold: 5–10% for diversification, via ETFs or funds.
- 2REITs and InvITs give listed access to income-producing assets.
- 3International funds diversify country and currency risk.
Try it with your own numbers
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Educational content, not investment advice. Figures are illustrative.