Gold prices to dip 15%, says Quant MF — but here’s why it is worth investing

Quant Mutual Fund has advised investors that gold prices are likely to decrease by 12-15% in the coming two months. This outlook comes as part of a broader analysis by the fund, which outlines strategic investment approaches amid fluctuating global markets.

The fund house asserted that despite this short-term correction, gold remains a favourable medium to long-term investment, advocating for a robust allocation towards precious metals in diversified portfolios. This approach is particularly important as investors navigate the complexities of the current economic climate, where traditional safe havens like gold can provide stability.

Amidst global economic uncertainties, Bitcoin is highlighted as a potentially lucrative investment for those with a high-risk appetite. The fund noted that while short-term impacts from global liquidity tightening may affect cryptocurrencies, the medium and long-term prospects remain promising. "The medium-term and long-term outlook, however, remain constructive for crypto. High-risk appetite from youngsters is essential for sustained rallies in crypto and particularly across all digital assets," the fund house elaborated. This perspective underscored the importance of understanding market dynamics and the role of emerging digital assets in modern portfolios.

The fund house suggested that June is a seasonally bullish month for crude oil, with a potential 10-12% price increase if the emerging market risk-off phase intensifies. This perspective aligns with their broader investment strategy that emphasises diversification and sector-specific investments.

"Investors worldwide, and in India, should aim to have a healthy mix of assets in their portfolio," advised Quant Mutual Fund, urging a balanced approach to asset allocation. Such diversification is crucial in managing risks and capitalizing on market opportunities.

Investing in Gold funds

Gold mutual funds have emerged as consistent performers across timeframes, driven by rising bullion prices and investor appetite for safe-haven assets. According to recent data, Tata Gold ETF, LIC MF Gold ETF, and UTI Gold Exchange Traded Fund are among the top performers over 1-month and 6-month horizons. For longer durations, UTI Gold ETF leads the 1-year returns at 35.39%, followed closely by Tata and LIC MF Gold ETFs.

Over a 3-year period, LIC MF Gold ETF tops the list with a return of 23.66%. Notably, these funds reflect not just market movements but also effective fund management and strategic asset allocation. Consistency in returns makes gold mutual funds an appealing choice for investors seeking stability amid market volatility. These funds allow easy exposure to gold without the need for physical storage, offering a practical hedge against inflation and currency fluctuations. Ideal for portfolio diversification, they suit both short- and long-term investors.

Top funds by 1-Month Return