I am planning to exit my equity funds and invest in gold. Would it be right to do so?
No. I have long been a disbeliever in gold because it is not a productive asset. But in times like these, gold shines and that is why it has had a brief period of exuberance. So one should have a small allocation to gold and that is about it.
But then, your productive assets are equity and debt and that should make up your principal asset allocation. Having said that, you can be very conservative with your equity and fixed-income investments and periodically rebalance them.
Against a doomsday backdrop, gold thrives, but it may not be a great long-term investment idea to invest based on this situation. Yes, for now gold is doing extraordinarily well, but the ideal thing would have been if you had bought gold before all this happened. By buying now, I feel you would just end up buying high.