The lure of gold

Have a 10-15 per cent allocation to gold in your portfolio. Since this is an asset class whose value fluctuates quite a lot, build your exposure by investing systematically

After a 20 per cent plus jump in the past year, gold is in the news again. And the noise around it is eerily similar to the ones we hear when the price of any asset class runs up, whether it is equity or real estate or bitcoins. 

But as a rule of thumb, you cannot let your investments be determined by the short-term performance of a specific asset class. I have always maintained that gold should form around 5-10 per cent of the portfolio, depending on the investor's goals and risk profile. Since gold prices fluctuate quite a lot,