ilmscore | Prediction Details
"So um the first thing is right if if you're looking at risk adjusted returns if you want to reduce a risk on the entire portfolio gold becomes a great addition. One of the reasons why 40% of our portfolio is also gold is if you look at the last 20 years of data if you plot a chart so if you look at nifty50 nifty is given about 12% peranom long-term returns maybe 20 years if you look at gold is also given 11 12% peranom if you put 50% of money in nifty and 50% in gold and you sort of merge that portfolio you look at the risk adjusted return so only nifty is 12% there are years like 2020 and 2008 where you've lost 40% 50% of your portfolio so that's the risk that you hold with equities if you look at gold it's done 11 12%. There have been bad years or you know two three bad years where you've lost about 30% of your portfolio. But when you combine these two they sort of are uncorrelated or have very low correlation to each other. The risk on the portfolio drops dramatically. You can make 12%. But you will not see more than like say 18 20% drop in the portfolio."
By Finance With Sharan | October 15, 2025 | Correct
From video
Why the Rich Are Moving From Cash to Gold | Money Printing, Inflation & India’s Opportunity | FWS 73 00:16:21 - 00:17:18
Interpreted Prediction
Gold is a good addition to a portfolio for risk-adjusted returns. A 50/50 Nifty/Gold portfolio historically offers similar returns to Nifty alone but with significantly reduced risk and drawdowns.
AI Evaluation Notes
The prediction suggests that a 50/50 Nifty/Gold portfolio would offer similar returns to Nifty alone but with significantly reduced risk. While it's challenging to precisely quantify 'significantly reduced risk' without specific metrics, historical data and expert analyses generally support the notion that gold can act as a diversifier and reduce portfolio volatility. However, performance can vary, and specific risk-adjusted returns would depend on the exact timeframe and asset allocation. A 50/50 Nifty/Gold portfolio has provided diversification benefits over the past year, but the degree to which the risk was reduced and returns matched Nifty alone falls within a somewhat accurate range.

Prediction Details

Topic
Gold Investment

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