Investing in uncertain times: FinEdge’s Harsh Gahlaut on gold rally, SIPs, and India’s growth story

 

With interest rates fluctuating, global markets remaining uncertain, and India’s economy standing out as a bright spot, investors are wondering how to position their portfolios for the road ahead. In this insightful conversation with BT, Harsh Gahlaut, Co-founder and CEO of FinEdge, discusses how investors can strike the right balance between equity and debt, navigate market volatility, make sense of the gold and silver rally, and identify sectors that could define India’s next decade of growth.

Q). Amid volatile interest rates, global uncertainty, and India’s strong growth, what’s the right way for a regular investor to split their money between equity, debt, and other investments?

Harsh Gahlaut: The starting point for any investor should be intent, not instruments. Over-diversification without a clear purpose often results in what we call “diworsification”, i.e. spreading too thin and diluting returns. For most Indians, the primary investing objective is growth, and equities remain the most effective vehicle to achieve that over the long term.

Debt can and should be added, but only in alignment with the investor’s goals, whether that’s stability, liquidity, or near-term needs. It’s also important to look at the investor’s overall financial picture. Most Indians already hold significant exposure to real estate, gold, fixed deposits, and even traditional insurance products. Simply adding more debt can skew asset allocation, potentially compromising long-term returns and delaying important goals like retirement or children’s education.

The right split between equity, debt, and other assets should therefore be personalised, anchored in goals, time horizon, and risk appetite rather than based on market noise or a “one-size-fits-all” formula.

Q). SIPs are popular for equities, but should investors also look at SIPs in other products to build a more balanced portfolio?

Gahlaut:  SIPs work best in equities because they allow investors to average costs over time and harness the power of compounding, two critical ingredients for creating inflation-beating, long-term wealth. By starting small and investing consistently, investors can build significant wealth without being forced to time the market.

Other products may come into play later in the journey when the focus shifts from wealth creation to wealth management. And it’s important to note: wealth creation and wealth management require completely different strategies. For example, once an investor is nearing a goal or has accumulated a sufficient corpus, fixed-income SIPs or other low-risk vehicles can help preserve capital and manage liquidity.

The key, however, is not just where you invest through SIPs, but why. Without clarity of purpose, investors risk panic during downturns, leading to knee-jerk actions like stopping SIPs, switching products or changing asset allocation, which can harm long-term outcomes. Anchoring SIPs to well-defined goals helps ensure discipline and resilience through market cycles.

Q). When markets fall sharply, small investors often panic. What are some easy ways to protect wealth and still stay invested for the long run?

Gahlaut: Starting investments is easy; staying invested is what creates wealth. The ability to remain invested during sharp market falls comes down to having a strong process. Good returns are never the result of luck or quick tips, but of discipline, clarity, and resilience.

For investors, a few essentials make all the difference:

Have absolute clarity of purpose, and know why you are investing.
Set realistic expectations around risk and returns.
Clearly define and prioritise your goals.
Inculcate disciplined investing habits through tools like SIPs and goal reviews.
Manage your behaviour, don’t let fear or greed drive decisions.
It’s worth remembering that in investing, we are often our own worst enemies. By anchoring decisions to goals and following best practices, investors can protect wealth and give themselves the best chance of long-term success even through volatile markets.

Q). Looking ahead, which sectors or themes do you think can create strong wealth for Indian investors over the next 5–10 years?

 Gahlaut: India’s demographics, rising per capita income, and structural reforms point to a potential “golden decade” ahead. This long-term growth will create opportunities across multiple sectors, including technology, defence, consumption, and infrastructure.

However, it’s important for investors not to chase themes directly. Sectors are cyclical, and getting timing wrong can derail wealth creation. A more prudent approach is to participate through diversified vehicles, such as flexi-cap funds, managed by experienced professionals. These fund managers have the expertise to allocate dynamically across sectors, ensuring investors benefit from India’s growth story without taking concentrated risks.

In short, instead of betting on “the next hot theme,” investors should focus on disciplined, goal-linked investing and let professionals handle sectoral calls.

Q) Gold and silver are seen as safe-haven assets. With global uncertainties and shifting interest rates, what’s your short- to medium-term outlook for these metals?

Gahlaut: Gold and silver have benefited from a “perfect storm” in recent years. Geopolitical tensions, currency challenges, and global risk-off events have all supported their rally. As long as uncertainty persists, these metals may continue to attract flows, though perhaps not at the same pace as the past two years.

That said, investors should treat gold and silver as stability assets, not as return drivers. Their role in a portfolio is to provide diversification and act as a hedge during periods of volatility. Allocations should remain modest because overexposure can compromise long-term growth. The key is to avoid making decisions solely based on recent performance and to view these metals as part of a disciplined asset allocation strategy.

Q). Corporate earnings have been a key driver of market growth. Do you see the current earnings momentum sustaining, and which sectors are likely to lead the growth?

Gahlaut:  Over the last five to six quarters, we’ve seen a meaningful time correction, which has helped cool down overall valuations. Large caps, in particular, are beginning to look more attractive and well-positioned to lead the next leg of recovery when it comes.

That said, earnings growth has been uneven, with clear divergences across industries and market capitalisations. Going forward, growth is likely to be more stock-specific than sector-specific. For investors, this underlines the importance of diversification and relying on professional fund managers who can identify quality businesses, rather than attempting to make concentrated sector bets.

Q). FinEdge has crossed the Rs 1,500 crore mark in assets under management. What, in your view, drove this success? And how do you plan to take it to the next level?

Gahlaut: Reaching Rs 1,500 crore in assets under management is a key milestone, but what matters more is that we’re managing over Rs 45,000 crore worth of future goals for our clients, a sign of the trust they’ve placed in us. Our approach combines technology with human advice, ensuring transparency and client-first decisions. Most of our new investors come through referrals, which speaks to their confidence in us. With over 20,000 clients already on board, our next aspiration is to serve more than 1,00,000 clients in the next five years. Going ahead, we aim to expand our reach while continuing to focus on client trust and long-term relationships.