Akshaya Tritiya is considered one of the most auspicious days for new beginnings, especially when it comes to wealth creation. Traditionally, Indians buy gold on this day, believing it brings prosperity and financial security. However, modern investors also explore other avenues like mutual funds, gold ETFs, sovereign gold bonds (SGBs), gold-backed Market Linked Debentures (MLDs), and Multi-Asset Allocation Funds.
With gold prices surging in 2025 and mutual funds offering long-term growth potential, which is the better choice this Akshaya Tritiya? Let’s compare both options to help you make an informed decision.
Short-term (Last 10 days): Volatile, with a slight dip after a peak around April 22.
Monthly (April 2025): Upward trend compared to early April.
Yearly (2025 YTD): Significant rise—from ₹7,150/gram (22K) on Jan 1 to ₹9,015/gram today—a ~26% increase in just four months.
Why Consider Gold This Akshaya Tritiya?
✅ Safe Haven Asset: Performs well during inflation & economic uncertainty. ✅ Cultural Significance: Considered auspicious for wealth accumulation. ✅ Diversification: Reduces portfolio risk due to low correlation with equities.
Modern Gold Investment Options (Beyond Physical Gold)
Gold ETFs – Trade like stocks, no storage worries.
Sovereign Gold Bonds (SGBs) – Govt-backed, offer 2.5% annual interest + capital appreciation.
Gold Mutual Funds – Invest in gold ETFs with SIP flexibility.
Edelweiss Gold Structured Products – Structured products offering gold-linked returns with downside protection from Edelweiss. For details refere this post
Limitations of Gold: ❌ No regular income (except SGBs). ❌ Storage & making charges (for physical gold). ❌ Long-term returns (~10-12% CAGR) may lag equities.
2. The Power of Mutual Funds: Growth-Oriented Investing
Why Consider Mutual Funds This Akshaya Tritiya?
✅ Higher Growth Potential: Historically, equities have delivered 12-15% CAGR over long periods. ✅ SIP Benefits: Disciplined investing with rupee cost averaging. ✅ Tax Efficiency: LTCG on equity funds taxed at 12.5% (after ₹1.25L profit), better than physical gold (20% after 3yrs). ✅ Diversification: Invest across sectors, market caps, and asset classes.
Index Funds (Nifty 50, Sensex) – Low-cost, passive investing.
Sectoral/Thematic Funds – Bet on high-growth industries.
Hybrid Funds – Balanced risk with equity + debt mix.
Limitations of Mutual Funds: ❌ Market volatility can lead to short-term fluctuations. ❌ Requires patience (5+ years for best results).
3. The Best of Both Worlds: Multi-Asset Allocation Funds
For investors who want gold exposure along with equities and debt, Multi-Asset Allocation Funds are an excellent choice. These funds typically invest in:
Equities (50-65%) – For growth
Debt (20-30%) – For stability
Gold (10-20%) – For hedging & diversification
Benefits of Multi-Asset Funds
✅ Automatic Rebalancing – Fund managers adjust allocations based on market conditions. ✅ One-Stop Diversification – No need to manage separate gold, equity, and debt investments. ✅ Lower Volatility – Smoother returns compared to pure equity funds.
Who Should Invest?
Investors seeking a balanced, low-maintenance portfolio.
Those who want gold exposure without buying physical gold/ETFs separately.
Popular Multi-Asset Funds in India:
ICICI Prudential Multi-Asset Fund
Quant Multi Asset Fund
HDFC Multi-Asset Fund
quant Multi-Asset Fund
Quantum Multi-Asset Fund
NFO of Canara Robeco Multi Asset Allocation Fund
Canara Robeco is launching its new Multi Asset Allocation Fund (NFO open from 9th-23rd May 2025). This fund offers:
✅ Smart diversification across equity, debt and gold ✅ Professional asset allocation and rebalancing ✅ Potential to benefit from multiple asset classes
Want to learn about this NFO in a fun way? Check out Canara Robeco’s creative rap song explaining the scheme’s benefits!
4. Gold vs. Mutual Funds vs. Multi-Asset Funds: Which is Better for You?
Factor
Gold
Mutual Funds
Multi-Asset Funds
Returns (Long-term)
~10-12% CAGR
12-15%+ CAGR
10-14% CAGR
Liquidity
High (except SGBs)
High
High
Taxation
20% LTCG + 4% cess
12.5% LTCG (equity)
Depends on allocation
Risk
Low volatility
Market-linked risk
Moderate risk
Diversification
Only gold
Equity/debt focus
Gold + Equity + Debt
Best For
Hedging, short-term safety
Long-term wealth creation
Balanced growth with stability
Who Should Invest in Gold?
Investors looking for stability & hedging.
Those wanting portfolio diversification.
Buyers who value cultural significance.
Who Should Choose Mutual Funds?
Investors with 5+ years horizon.
Those seeking higher growth potential.
Individuals comfortable with market-linked risks.
Who Should Opt for Multi-Asset Funds?
Investors who want a single solution for equity, debt, and gold.
Those looking for automated rebalancing and reduced volatility.
5. Smart Investment Strategy for Akshaya Tritiya 2025
Instead of choosing between gold and mutual funds, why not balance both? Here’s a smart allocation strategy:
50-60% in Equity Mutual Funds (for growth).
20-30% in Multi-Asset Funds (for diversification).
10-20% in Gold (ETFs/SGBs/MLDs) (for hedging).
10% in Debt Funds/FDs (for stability).
Pro Tip: If you prefer a hands-off approach, Multi-Asset Funds can simplify your gold + equity + debt allocation in one product.
Final Verdict: Which is the Best Akshaya Tritiya Investment?
For Safety & Short-Term Gains → Gold (ETFs/SGBs).
For Long-Term Wealth → Mutual Funds (SIPs).
For Balanced Growth → Multi-Asset Allocation Funds.
This Akshaya Tritiya, make an informed choice based on your financial goals. At Meta Investment (Pune), we help you craft a customized investment plan that aligns with your risk appetite and aspirations.
📞 Contact us today for a free portfolio review!
Frequently Asked Questions
1. Why is Akshaya Tritiya considered auspicious for investments?
Akshaya Tritiya symbolizes eternal prosperity in Hindu tradition. Investments made on this day are believed to grow perpetually, making it popular for buying gold or starting SIPs in mutual funds.
2. Is physical gold still a good investment in 2025?
Physical gold has cultural value but comes with making charges (~10-15%) and storage risks. Modern alternatives like Gold ETFs, SGBs, or gold-backed MLDs offer better liquidity and returns.
3. How do Sovereign Gold Bonds (SGBs) compare to mutual funds?
SGBs: Offer 2.5% annual interest + capital appreciation, tax-free if held to maturity (8 years). Mutual Funds: Higher growth potential (12-15% CAGR) but market-linked risks. Ideal for: SGBs suit risk-averse investors; mutual funds fit long-term wealth builders.
4. Can I invest in both gold and mutual funds for diversification?
Yes! A 60% equity (mutual funds) + 20% gold (ETFs/SGBs) + 20% debt split balances growth and safety. Multi-asset funds automate this mix.
5. Are gold-backed Market Linked Debentures (MLDs) safe?
MLDs (e.g., Edelweiss) offer gold-linked returns with capital protection. However, returns are capped, and liquidity is lower than ETFs. Best for: Conservative investors wanting gold exposure without volatility.
6. Which gives better tax benefits: gold or mutual funds?
Gold: 20% tax on long-term gains (after 3 years) + 4% cess. Equity Mutual Funds: 12.5% tax on gains >₹1.25L (after 1 year). Tip: SGBs are tax-free if held for 8 years.
7. How do Multi-Asset Allocation Funds work?
These funds invest in equity (50-65%), debt (20-30%), and gold (10-20%), automatically rebalancing to reduce risk. Example: ICICI Prudential Multi-Asset Fund.
8. What’s the best investment for short-term (1-3 years) goals?
Gold MLDs/Gold ETFs/FOF/SGBs (if you expect prices to rise). Debt mutual funds (lower risk than equity). Avoid equity funds for short-term needs due to volatility.
(Updated: )
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TusharFollowSeasoned Financial Companion | Mutual Fund Distributor | Providing Expert Guidance to Help Clients Achieve Their Financial Goals 📈💼 | Ex- Software Developer
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