While allocation of portfolio for the purpose of long term investment - we would have one type of assets that are getting an compounding on the interest this asset gains annually, and we would have assets into which we would be also adding portions that will enhance the compounding power to a larger extent.
An example of the former would be Fixed Deposits in Banks, whereas for the latter it would be SIPs that are regularly invested into a Mutual funds.
Even if considering the risk adjusted returns, would not the compounding power of an investment vehicle into which we are able to contribute monthly or annually beat any kind of investment vehicle that doesn't have this facility?
Hence, won't Gold ETFs or Mutual Funds beat the SGBs in an eight years tenure, even if the markets are bullish or bearish?
I am not preferring for any particular asset. I am just researching on the same. Pondering upon the concepts. So according to you will Gold ETFs beat easily over SGBs in the long term?
I think nobody is really sure which one among the strategies is a clear winner
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