SEBI allows equity mutual funds to invest in gold, silver
Business
SEBI just updated its rules, allowing equity mutual funds to invest up to 35% in gold and silver.
The idea is to help these funds spread out their risk and handle market ups and downs better.
Until now, they mostly stuck with stocks, barely touching precious metals.
Fund managers can now manage risk better
Bringing gold and silver into the portfolio gives fund managers more ways to manage risk: gold is a classic safe haven, while silver's value ties more to industrial demand.
As Shivam Pathak from Asset Elixir puts it, this move could make portfolios steadier overall, but it is smart for investors to keep an eye on how much metal they are holding so things do not get out of balance.