Gold Gave 26% Returns in 5 Years, Should You Add It to Your Portfolio with Mr. Devender.

In this insightful Face2Face, Vivek Bajaj speaks with Devender Singhal, Fund Manager at Kotak Mutual Fund, who brings over two decades of market experience and manages nearly ₹62,000 crore across equity and hybrid strategies. The conversation focuses on how multi-asset investing can help investors navigate different market cycles. Devender explains that a multi-asset fund invests across at least three asset classes—typically equity, debt and precious metals such as gold and silver. Since these assets often behave differently across economic cycles, combining them can help reduce portfolio volatility.

A key takeaway is the importance of disciplined asset allocation. Rather than trying to predict every market move, the fund follows a model-driven approach. Rebalancing naturally encourages investors to trim an asset after a strong rally and increase exposure after a decline—effectively bringing a “buy low, sell high” discipline into portfolio management. Devender also discusses long-term return expectations, suggesting that Indian equities could potentially deliver around 12% CAGR over longer periods, supported by economic growth and inflation. The discussion also explores active versus passive investing.

While passive funds closely follow an index after accounting for costs and tracking error, Devender believes active management provides an opportunity to generate additional alpha through stock selection and portfolio decisions. Perhaps the most important message is behavioural. Advisors can add significant value during market corrections by preventing investors from panic-selling and helping them remain aligned with long-term goals. For investors looking for simplicity, a well-managed multi-asset fund can offer diversification, disciplined rebalancing and multiple asset classes within a single investment.