A good alternative: Why you should Invest in gold via a structured route

livemint.com:

Gold as a hedge: Gold has historically demonstrated its resilience during times of economic uncertainty, often appreciating when other assets falter. Its value tends to hold steady, if not appreciate, during periods of economic uncertainty. The consistent depreciation of the dollar/rupee exchange rate has become a defining characteristic of the Indian financial landscape.

Against this backdrop, gold has emerged as a compelling choice, as its value often appreciates in response to currency fluctuations. Over the past decade, gold prices (in rupees) have witnessed notable growth due to a 52% depreciation of rupee/dollar, solidifying its role as a currency hedge. Low correlation: Gold exhibits a remarkably low correlation of -0.15 (approximately) with the Nifty in the period of 2000-2023, making it an ideal diversification tool.

Reduces volatility: Incorporating gold into your equity portfolio, even in modest proportions, can significantly diminish volatility while preserving returns. Data shows that adding an allocation of gold to an equity portfolio, say Nifty 50 index, from 0% to 10% decreases the annual volatility from 6.4% to 5.8% and increases the Sharpe ratio from 1.75 to 1.91, thereby providing much better risk adjusted returns. Gold’s resilience: Gold’s resilience shines in economic turbulence.