Hey there!

Welcome back to our April newsletter! Let's talk about what's been going on with gold lately.

Ever wondered why people love gold so much? It's not just shiny; it's like super-valuable money. As our Parents always say - “Paise bach gaye ho to Gold me Invest karna.”

Gold prices recently went way up, making investors both happy and nervous. Just look at the numbers: on March 1st, 2024, 10g of gold cost Rs. 64,535, but by March end, it shot up to Rs. 70,875. It was a big surprise! 😱

This isn’t a hoax! It’s absolutely real. We understand that the price of gold fluctuates, but this sudden rise is unnatural.

A detailed look into the matter showed that this surge ignited bullish sentiments in both domestic and international markets. It is believed that the increase in gold prices can be attributed to the decline in the Dollar Index (DXY), which has once again dipped below the 104 mark. It held its ground at 103.80 against a basket of six major currencies, but a recent report shows a degree of stability at 104.78. 

According to Chirag Mehta (Chief Investment Officer, Quantum AMC), “Geopolitical tensions in the Middle East and global growth concerns are acting as tailwinds. While the US economy has managed to weather high borrowing costs and tight credit conditions, thanks to US fiscal spending and consumers running down their savings, the support from these factors is expected to wane in 2024, dragging down growth. Rising credit card and auto delinquencies in the US signal weakness ahead. Additionally, rapidly increasing interest costs on the $34 trillion US national debt too is expected to weigh on policymakers’ decision making.”

He further added, “Gold prices could remain choppy in the month ahead as the market reacts to geopolitical developments and US monetary policy.” 

Let's take a quick trip down memory lane. Gold prices have been climbing for the past 20 years. From Rs. 4,400 for 10g in 2000 to a crazy Rs. 70,870 in March 2024! That's a lot!

With the ever-increasing gold prices, purchasing gold as an investment or investing in gold has become challenging for most people. So, what are the alternatives? 

According to experts, investing in Equities and Mutual Funds is the best option. But a word of caution - you need to thoroughly understand the process of collecting, examining, and interpreting data about a market, a product or a category of products; also about the industry or the sector before you start investing. It is equally important to understand and predict market trends, consumer behavior and preferences, and the competitive landscape. 

All this seems stressful and time-consuming?

What if we tell you about a product that can take away your stress in seconds? With All Rounder, you can harnesses the power of Ai and manage your investments. All Rounder is an Ai-based multi-asset investment advisory product that understands your Risk Appetite and Financial Goals, and accordingly distributes your investments to different asset classes. This process is called Asset Allocation.

Asset Allocation is one way to beat inflation and growing your investments is another. Now, what if you get both benefits in one? Would you invest in that product?

If your answer is yes, then investing in All Rounder is your best bet. It adapts to the uncertain market conditions, monitors market movements, and divides your investments among different asset classes, such as Stocks, ETFs, and Cash. The intuitive Ai of All Rounder adjusts the percentage of each asset in your investment portfolio based on your Risk Tolerance, Financial Goals and Investment Time Frame.

Predicting change in gold prices is difficult, just like predicting the market trend. However, with the intuitive power of Ai, we have been able to adapt to market change and deliver optimal returns through All Rounder. If you wish to know more about our Ai-powered investment products, don’t shy away from reaching out to us.

Innovage Investment Advisers Private Limited

Registered address: A 703/704, Eureka Towers, Mind Space, Malad (West), Mumbai - 400064. 

SEBI registered Investment Adviser having registration no. INA 000003809 (Valid from 13th Nov 2015 - Perpetual). AMFI Distributor Number: ARN No. 87155. (IRDAI) registration no. CA0339

Mutual Fund investments are subject to market risks, read all scheme related documents carefully before investing.

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.

Registration granted by SEBI, membership of BASL and certification from NISM in no way guarantee performance of the intermediary or provide any assurance of returns to investors.