Hello Sir, Is Gullak app a good option for investing in Gold? I have taken SIP of Gold ETFs and investing around 5.5k monthly. Now want to raise my investments in gold. Is it good to invest thru Gullak?

Ans: Hi Sanjay,

I understand that many apps such as Gullak is quite famous amongst everyone fro quick gold investments. Apps like these provide a quick and effortless investment solution to everyone who wants to go to digital gold.
But I do not recommend this. these apps comes with hidden charges in the form of 3% gst when you buy and some deductions as well when you will sell. Overall not much beneficial if you want to invest in Gold.
Gold etf, by far, is the best way tto invest in digital gold as its appreciation is wrt to the gold price in actual. It doesn't have any hidden or extra cost. Go for it without thinking again. Monthly SIP in gold etf is the best way to take the benefit of market volatility.

Let me know if you need more help.

Best Regards,
Reetika Sharma, Certified Financial Planner
https://www.instagram.com/cfpreetika/

Ans: Gold has a strong role in our culture. It gives emotional comfort. It also gives portfolio stability. Gold behaves different from equity and debt. This helps your portfolio stay balanced during tough times. Many Indian families see gold as a safety net.

But gold is not a fixed return tool. Gold does not give interest. Gold moves in cycles. So the right allocation and right expectation is key. You have asked at the right time.

» Is it the right time for gold now
Gold prices move due to many factors. These factors include global stress, inflation, currency weakness, and interest rate shifts. When the world feels fear, gold sees demand. When inflation rises, gold tends to protect value.

Right now, global volatility is still high. Many large economies face slowdowns. Currencies move sharply. Inflation remains sticky in many markets. Central banks also keep buying gold for reserves. These points support gold.

But gold also becomes costly at times. High prices may reduce near-term upside. Yet gold is still useful for long-term balance. Timing gold perfectly is hard for any investor. Even experts struggle.

As a Certified Financial Planner, I see gold as a risk reducer. Not as a profit generator. So the right time is not about today or tomorrow. The right time is when you want stability. If your goal is long-term and you want balance, then it is fine to add gold now in a planned way.

» How much gold makes sense
Too much gold will reduce your growth. Too little gold may reduce stability. Most long-term investors keep 5% to 10% of total wealth in gold. This is a steady range. It helps protect your portfolio during uncertain periods.

Your own risk level can guide you. If you feel nervous about market swings, you can stay closer to 10%. If you are confident and calm, you can stay near 5%. You should not hold more than 10% in most cases. Higher allocation slows long-term wealth building.

» Why gold mutual funds are better than physical gold
Physical gold needs storage. It needs safety. It also has making charges. It may get impurities. Selling physical gold may also reduce returns. So many long-term investors use gold mutual funds.

Gold mutual funds give you easy access. You do not worry about purity. You do not worry about storing it. You can buy small amounts through SIP. You can sell anytime. You also get transparency. You can track NAV.

Gold mutual funds invest in gold instruments. They follow global prices. So they reflect market movement in a clean way. This helps you plan better.

» Why you should avoid direct funds
You asked for a suggestion on a gold mutual fund. Before that, I must explain direct plans. Direct plans look cheaper. But they do not give guidance. They do not give support. They do not give personal strategy. They do not offer handholding.

Direct plans also invite more mistakes. You may enter at wrong times. You may exit early. You may get confused with market noise. These mistakes cost far more than the small cost difference.

Regular plans through a qualified Mutual Fund Distributor with a CFP background give you support. You get guidance for allocation. You get goal clarity. You get review sessions. You get behaviour support when market falls. All these help you avoid loss due to wrong decisions.

Even many investors who use direct plans later shift to regular plans after seeing behaviour mistakes. The support you get through a CFP trained MFD is far more valuable than the small cost gap.

» Why index funds and gold ETFs are not ideal for you
You have not asked about index funds here. But you have asked for a gold mutual fund. Many people mix gold ETFs or index-style gold options with gold mutual funds. So I must explain the disadvantages.

Index-type products follow the market without active thought. They just copy the index. They cannot control risks actively. They cannot handle market shifts. They cannot take advantage of specific opportunities. You get no active guidance.

Index funds also create a sense of “easy and cheap”. But they leave you alone during tough markets. You may panic and exit. You may invest at wrong points. This increases your risk.

For gold ETFs, you also need a demat account. You also see brokerage cost. You may also get lower liquidity compared to units in mutual funds.

Actively managed gold mutual funds through regular plans give clarity, flexibility, and guidance. They help you stay aligned to your long-term purpose.

» How gold mutual funds work
Gold mutual funds invest in gold. They follow global prices. They move similar to international gold prices. When gold rises, these funds rise. When gold falls, these funds fall.

They aim to offer easy access to gold without physical risks. They allow SIP. They allow lumpsum. They allow long-term holding with purity assurance.

Gold mutual funds also remove the need for demat account. They also offer better liquidity. You can redeem fast if needed.

» Short-term behaviour of gold funds
Short-term gold movements can be sharp. Gold may fall even when the world fears. Gold may rise even when markets calm. This is normal. Gold reacts to many global signals at once.

If you enter gold with a short-term view, you may feel confused. You may see ups and downs. This is why gold needs patience.

Short-term charts can distract many investors. But you are not seeking trading. You are seeking long-term safety balance. So you can ignore short-term noise.

» Long-term behaviour of gold funds
Over long years, gold protects value. Gold grows with inflation in the long run. Gold supports portfolios in global stress periods. Gold reduces big falls.

Gold also supports asset mix. Gold improves risk-adjusted returns. Gold may not beat equity in long run. But gold reduces shocks. This helps keep your mind stable. This helps you stay invested in growth assets without panic.

When you hold gold for long periods, it smoothens your experience. This is useful for Indian investors who face both global and local volatility often.

» Tax rules for gold mutual funds
Gold mutual funds follow debt fund taxation. You pay based on your income tax slab. There is no special rate for long-term or short-term. This is fine because gold funds are for balance. They are not for tax advantage.

When you redeem, tax applies on your gain. If you stay long, your tax impact reduces due to compounding benefits. So planning matters more than tax.

» How to enter gold mutual funds
A simple SIP is useful for gold. It avoids timing stress. It helps you buy at different levels. It helps you stay steady.

You can also add lumpsum slowly. You can add over few months. This helps avoid high price entry risk.

Always link your gold allocation to your total portfolio. Do not buy gold based on fear. Buy based on asset balance.

» How to choose a gold mutual fund without naming schemes
Since I must not name any scheme, I will guide you on selection features:

– Choose a fund with steady tracking quality.
– Choose a fund with simple structure.
– Choose a fund that follows global gold prices cleanly.
– Choose a fund with high transparency.
– Choose a fund with stable performance history.
– Choose a fund managed by a reputed fund house.
– Choose through a regular plan via an MFD with CFP background.

These points ensure the fund will reflect gold’s nature well.

» Why regular plan through a CFP-trained MFD is better
You get guidance for allocation. You get help in understanding gold cycles. You get reminders for review. You get behaviour support in panic times. You also stay aligned to long-term goals.

Many investors lose money not due to product. They lose due to behaviour mistakes. Regular plans offer a support system. This reduces mistakes. This increases discipline. This improves long-term outcomes.

» How gold fits into a 360 degree financial plan
Your gold allocation should link with your full picture. Here is a simple 360 degree view:

– You may have equity funds for growth.
– You may have debt funds for stability.
– You add gold funds for crisis protection.
– You review this mix yearly.
– You adjust based on life stage.
– You keep goals at the centre.
– You avoid emotional decisions.
– You avoid unnecessary churn.
– You invest with steady discipline.

This is a healthy long-term plan. Gold acts like a seat belt. You may not feel it daily. But it protects you during sudden shocks.

» When gold funds may not suit you
Gold funds may not suit you if you expect fixed returns. Gold funds may not suit you if you want fast growth. Gold funds may not suit you if you want constant upward movement.

Gold funds work best when you show patience. Gold funds work best when used with clear allocation rules. They are not stand-alone wealth engines. They are balance tools.

» What some investors misunderstand
Many think gold will always rise. That is not true. Gold moves in cycles. It may rise fast in crisis. Then it may stay flat for long. So long-term use is better than short-term bets.

Some think gold replaces equity. That is wrong. Equity builds wealth. Gold protects wealth. Both are needed in right mix.

Some think physical gold is the best. But physical gold has high cost and low purity trust. Gold funds are cleaner and safer for long-term.

» Why now can still be okay for gold
You may worry that prices are high. But gold is not a trading tool. Gold supports your overall plan. So even if prices feel high, long-term use justifies entry.

Gold also moves in global cycles. Global stress is still active. Many central banks may slow interest rate shifts. Inflation stays uneven. This makes gold still relevant.

So entering gold now through SIP or staggered steps is fine. You focus on long-term role, not today’s price.

» Finally
You are thinking very wisely. You are asking before acting. This is a good sign. Gold funds are useful when used in the right proportion. They offer stability. They offer balance. They offer purity. They offer easy access.

Choose a gold mutual fund through a regular plan. Use guidance from an MFD with CFP background. Keep your allocation between 5% and 10%. Use SIP for steady entry. Review yearly. Stay patient. Link to goals.

With this approach, gold will serve you well. It will protect your portfolio during tough phases. It will also help your long-term discipline.

Best Regards,
K. Ramalingam, MBA, CFP,
Chief Financial Planner,
www.holisticinvestment.in

https://www.youtube.com/@HolisticInvestment

Ans: You already built a solid foundation. Many investors delay planning. But you started early at 36. That gives you a strong advantage. You have no liabilities. You have long term thinking. You also have diversified savings like PPF, NPS, Emergency funds and direct stocks. That shows clarity and discipline. This approach builds wealth with less stress over time.

You also started systematic investments in equity funds. That is a positive step. Your selection covers multiple categories like large cap, mid cap, small cap, flexi cap, hybrid and precious metals. So the intent is right. You are trying to create a broad portfolio. That gives balance.

» Your Portfolio Composition Understanding
Your current SIP list includes:

Small cap

Mid cap

Flexi cap

Large cap

Large and mid cap

Hybrid category

Gold and Silver FoF

Equity and Debt allocation fund

Dynamic hybrid fund

This shows you are trying to cover many segments. But too many categories can create overlap. When there is overlap, you get confusion during review. It also makes portfolio discipline difficult. You may think you are diversified. But the holdings inside may repeat. That reduces efficiency.

Your portfolio now looks like:

Equity dominant

Hybrid for stability

Metals for hedge

So the broad direction is fine. But simplifying helps in long-term habit building.

» Fund Category Duplication
You hold:

Two flexi cap funds

One large and mid cap fund

One pure large cap fund

One mid cap fund

One small cap fund

Flexi cap funds already invest across large, mid, small. Then large and mid also overlaps. So the large cap exposure gets repeated. That may not add extra benefit. But it increases monitoring complexity.

So I suggest rationalising. Keep one fund per category in core. Keep satellite space for only high conviction.

» Core and Satellite Strategy
A structured portfolio follows core and satellite method.

Core portfolio should be:

Simple

Long term

Stable

Satellite portfolio can be:

High growth

Concentrated

Based on your thinking level, you can structure like this:

Core funds:

One large cap

One flexi cap

One hybrid equity and debt fund

One balanced advantage type fund

Satellite funds:

One mid cap

One small cap

One metal allocation if needed

This division gives clarity. You can continue SIPs with review every year. No need to stop and restart often. That reduces behavioural mistakes.

» Your Current SIP List Review with Suggested Streamlining

You can consider continuing:

One flexi cap

One large cap

One mid cap

One small cap

One balanced advantage

One equity and debt hybrid

You may reconsider keeping both flexi caps and both gold silver funds. One of each category is enough. Because too many funds do not increase returns. It complicates tracking.

Precious metal funds should not be more than 5 to 7 percent in your portfolio. This is because metals are hedge assets. They do not create compounding like equity. They act as protection during cycles. So keep them small.

» How to Use the Rs 6 Lakh Lump Sum
You asked about lump sum investing. This is important. Lump sum should not go fully into equity at one time. Markets move in cycles. So use a staggered method. You can invest the lump sum through STP (Systematic Transfer Plan). You can keep the amount in a liquid fund and set STP toward your chosen growth funds over 6 to 12 months.

This reduces timing risk. It also creates discipline. So your Rs 6 lakh can be deployed gradually. You may use 50% towards core equity funds and 30% toward satellite growth category. The remaining 20% can go into hybrid category. This gives balance and comfort.

» Regular Funds Over Direct Funds
One important point many investors miss. Direct funds look cheaper. But they demand deep knowledge, discipline, and behaviour control. Most investors lose more through emotional selling and wrong timing than they save on expense ratio.

With regular funds through a Mutual Fund Distributor with Certified Financial Planner qualification, you get guidance, structure and correction. The advisory discipline protects you during market extremes. That is more valuable than a small saving in expense ratio.

A personalised planner also tracks portfolio drift, rebalancing need and category shifts. So regular fund investing gives long-term benefit and behaviour coaching.

» Actively Managed Funds over Index or ETF
Some investors choose index funds or ETF thinking they are simple and cheap. But they ignore drawbacks.

Index funds or ETF will not avoid weak companies in the index. They will invest whether the company grows or struggles. There is no fund manager decision making. So when markets are at peak, index funds continue aggressive exposure. In downturns also they fall fully. There is no cushion.

Actively managed funds work with research teams. They can avoid bad sectors. They can shift allocation based on market and economy. Over long term, this gives better alpha and stability. So continuing with actively managed funds creates better wealth compounding.

» SIP Continuation Strategy
Once the rationalisation is done, continue SIPs every month without interruption. Pause and restart behaviour damages compounding power. SIP works best when you go through all market cycles. You benefit more during corrections because cost averaging works.

So continue SIP amount. You can also review SIP increase every year based on income. Increasing SIP by 10 to 15 percent every year helps you reach large corpus faster.

» Asset Allocation Based Approach
One key point in wealth creation is having the right asset mix. Equity gives growth. Hybrid gives balance. Metals give hedge. Debt gives safety. Your asset allocation should stay aligned to your risk profile and time horizon.

Since you are young and have long term horizon, higher equity allocation is fine. But as time moves, rebalancing is important. Rebalancing protects gains and restores allocation.

So review your asset allocation every year or during major life events like child birth, home buying or retirement planning.

» Behaviour Management
Many portfolios fail not due to bad funds. They fail due to bad decisions. Selling during correction. Stopping SIP when market falls. Chasing past return performance. These mistakes reduce wealth.

Your discipline so far is good. Continue to stay patient during volatility. Equity rewards patience and time.

» Financial Goals Clarity
Since you have no children now, you can decide your long-term goals. Typical goals may include:

Retirement

Future child education

Dream lifestyle purchase

Health care reserves

When goals are clear, investment purpose becomes stronger. So you can map each fund category to goal horizon. Short-term goals should not use equity. Long-term goals should use equity with hybrid support.

» Role of Review and Monitoring
Review once in a year is enough. Frequent review can create anxiety. Annual review helps check:

Fund performance

Expense drift

Category relevance

Allocation balance

Then adjust only if needed. This progress helps you stay confident and aligned.

» Taxation Awareness
Equity mutual funds taxation rules are:

Short term (below one year holding) taxable at 20 percent

Long term (above one year holding) gains above Rs 1.25 lakh taxable at 12.5 percent

Debt mutual funds are taxed as per your income slab.

So always hold equity funds for long term. That reduces tax impact and gives better growth.

» SIP Increase Plan
You can create a simple plan to increase SIP over time. For example:

Increase SIP at every salary increment

Increase SIP during bonus time

Use rewards or extra income for investing

This habit accelerates wealth. So by the time you reach 45 to 50 years, your investments could reach a strong level.

» Insurance and Protection
Before investing large, ensure you have term insurance and health insurance. If not already done, it is important. Insurance protects wealth. Without insurance, even a small medical event can impact investment plan. So review this part also. Since you are married, cover both.

» Wealth Behaviour Mindset
You are already disciplined. Just keep these simple principles:

Invest without stopping

Review once a year

Avoid funds overlap

Follow asset allocation

Avoid reacting to media noise

This helps you reach long term milestones.

» Finally
You are on the right track. Only fine tuning and simplification is needed. Your discipline is visible. Your portfolio will grow well with structure, patience and periodic review. Use the Rs 6 lakh with STP approach. And continue SIP with rationalised categories.

With time and consistency, wealth creation becomes effortless and peaceful. You just need to stay committed and avoid overthinking during market movements.

Best Regards,
K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

https://www.youtube.com/@HolisticInvestment