Gold Investment: The 'Golden Rule' of investing in gold - will tell you in minutes how much gold to keep in your portfolio and why?

The year 2025 has been a good one for investors who have invested in gold. This year, gold has delivered impressive returns. Most experts recommend including gold in your portfolio. Gold acts as a protective shield. When the stock market or other asset classes decline, it balances your value. But the question is, how much money should be invested in gold? If you're looking for an answer to this question, the 5-15% rule can be a perfect guide.

What is the 5-15% rule?

This is a simple yet effective formula that suggests that 5% to 15% of your total investment should be in gold.

If you're a conservative investor, don't mind losing money, and value safety, consider keeping 5-10% of your gold portfolio.

If you are a moderate risk taker, meaning you are willing to take some risk for both safety and growth, then an investment of 10-12% would be appropriate.

However, if you are on the list of high-risk investors, meaning you are not hesitant to take risks for high returns, then you can invest up to 15% in gold.

Example:
Formula: Gold Allocation = Total Portfolio × (5% to 15%)

Suppose your total investment amount is ₹10 lakh.

If you are a conservative investor, you can invest ₹50,000 to ₹1 lakh (5-10%) in gold.

If you are a moderate risk taker, you can invest ₹1 lakh to ₹1.2 lakh (10-12%) in gold.

If you are a high-risk investor, then it would be better to invest up to ₹1.5 lakh (15%) in gold.

Benefits of Gold Investment
Inflation Hedge: Gold prices typically rise with inflation, meaning your real value doesn't decrease.
Portfolio Diversification: Gold is a non-correlated asset, meaning it often rises when the market falls.
Liquidity: Gold can be easily bought and sold at any time.
Low-Risk Asset: Gold has consistently delivered stable returns over the long term, making it a safe investment.
Global Value: Gold retains value in every country, making it a worldwide asset.

Ways to Invest in Gold
Physical Gold
Traditional way - in the form of gold jewelry, coins, and bars. However, this has manufacturing charges and security concerns.

Gold ETFs (Exchange Traded Funds)
A way to invest in gold digitally through the stock market. There's no safety issue, and prices are market-driven.

Sovereign Gold Bond (SGB)
A government-issued scheme that provides annual interest on the value of gold, along with tax benefits.

Digital Gold
A good option for small investors. Easily purchased through mobile apps or payment platforms.

Gold Mutual Fund
This fund invests in gold-linked ETFs or other assets, allowing you to profit from gold without owning gold.

Points to consider before investing
Invest in gold with a long-term view (at least 3-5 years).

Always buy from a trusted platform or bank.

Prefer options like SGB and ETFs because they don't require storage.

Disclaimer: This content has been sourced and edited from Zee Business. While we have made modifications for clarity and presentation, the original content belongs to its respective authors and website. We do not claim ownership of the content.