For the past 1.5 years, I have been investing Rs 15,000 every month in a gold fund. I am also investing in DSP BlackRock Top 100, HDFC Top 200 and HDFC Balanced. I am investing Rs 5,000 every month in each of these funds. Should I continue in these funds?
Gold prices have risen considerably in the past 4-5 years, because of the economic uncertainty that we have seen globally, after 2008. However, we don't believe that such a price rise will be sustainable on a long-term basis. Gold is not a productive investment vehicle. Hence, if you're investing in gold, it should only be for a specific purpose, like your daughter's wedding in the coming years. As far as your other mutual funds are concerned, you should continue investing in them for the long-term.