Did the surge in gold prices past Rs 62,000 per 10 grams this week make you think if you could ride the rally to earn your riches? Zee Business Managing Editor Anil Singhvi believes that gold can help investors "make money but not create big amounts of wealth".

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Citing the example of the period from 1979 — the base year of Indian equity benchmark Sensex — to 2022, Singhvi pointed out that the index has grown more than 10 times compared to gold returns. 

"Sensex has given a return of 608 times during this period, and gold multiplied by 56 times," he told Zee Business viewers. 

Although Sensex and gold have given similar returns over the last 20 years, "the time has come when one can expect Sensex to outperform gold", he said. 

What Anil Singhvi makes of gold vs equities 

"One has to think long term while judging returns," said Singhvi, touching upon the age-old debate of equities versus gold. 

Average annual return from 1979 to 2022
Gold Sensex
11% 20%

Source: Zee Business research

What should investors do to create wealth now? Anil Singhvi recommends a mix

Singhvi has already shared his top five long-term picks for creating wealth: Larsen & Toubro (LT), Tata Motors (TATAMOTORS), DLF, United Spirits (UNITDSPR) and HDFC Bank (HDFCBANK) — three of which are part of the 30-scrip blue-chip basket. 

One should dedicate about 10-15 per cent of the overall portfolio to gold, and another 10-15 per cent in commercial real estate if one intends to invest in the space, according to Singhvi. 

"One should not allocate more funds to these areas, else it will come in the way of wealth creation," warned the market expert.

Anil Singhvi's favourite mutual funds to generate wealth

Singhvi has four picks each from the equity- and debt-based mutual fund segments, though he is of the view one can use any average fund to create wealth:

Equity funds

  • ICICI Pru Large & Midcap
  • HDFC Flexi Cap
  • Franklin India Flexi Cap
  • DSP Smallcap

Debt funds

  • HDFC Corp Bond Fund
  • ABSL Corp Bond Fund
  • ICICI Pru Credit Risk Fund
  • Franklin India Dynamic Accrual Fund

Singhvi is known for using real-life market situations to explain complex concepts to his viewers.