Ignore FOMO, buy gold this Diwali for long-term gains: Ajay Srivastava

Market expert Ajay Srivastava on Wednesday dismissed concerns of missing out on gold's recent rally, urging investors to view the yellow metal as a core part of their long-term portfolios. Speaking to Business Today, Srivastava said, "Everybody who didn't buy gold can call it FOMO (Fear of Missing Out) today. But I still believe that in the long run, gold remains an intrinsic asset class in any portfolio."

He argued that the concept of FOMO is often driven by emotion rather than rational investment thinking. "This is just an emotional outburst from analysts who lost out on gold this year. Ignore it -- buy gold, keep it. Diwali is the right time to invest and over the years, it will give you fantastic returns. Equity doesn't deliver returns every year either," he added.

Srivastava highlighted that investors disappointed by muted equity market performance this year should consider increasing their exposure to gold. "Anybody who tells me about FOMO, I ask them -- did equities give us any return this year? No. So, buy gold if you haven't started yet. If it's underweight in your portfolio, add more. Don't worry about the naysayers,” he said.

Beyond gold, Srivastava expressed optimism about several sectors poised to perform well in the coming quarters, including automobiles, engineering, healthcare, e-commerce and gold loan companies.

Commenting on the primary market, Srivastava said he favours companies with strong competitive advantages and scalable business models. Citing the upcoming Lenskart Solutions IPO, he noted, "Companies like Lenskart, which have built a solid moat, are the ones to watch. It's a global-scale company that manufactures, retails and delivers end-to-end. Those are the types of businesses worth investing in."

He further added that while valuations of some IPOs may seem steep, investors should prioritise quality over price. "Yes, they may be expensive, but at least choose companies with strong moats and proven business models rather than chasing names without fundamentals," Srivastava concluded.