Gold is the most underappreciated diversifier in an Indian portfolio precisely because Indians already hold so much of it personally. A 5–10% portfolio gold position via IIBX or international ETFs has historically reduced drawdown in equity stress events meaningfully.
Alternatives in the global sleeve
5 min · For educational purposes only
Private credit, gold, real estate, structured notes — used carefully, these reduce portfolio drawdown without giving up long-run return.
Gold and precious metals
Private credit and direct lending
Offered through IFSC AIFs and global private banks. Yields of 8–12% in USD with monthly distributions. Illiquid (multi-year lockups) and credit-sensitive. Appropriate as 5–10% of a global sleeve for investors comfortable with the liquidity profile.
Structured notes
Capital-protected notes, autocallables, yield-enhancement. Tactical use only — these are not core positions. The opacity of pricing means most retail investors are underpaid for the risk they take. Use sparingly and only via advisors who can decompose the embedded options.
Key takeaways
- Gold is the easiest, most-overlooked diversifier.
- Private credit suits investors who can lock up capital for 3–5 years.
- Structured notes are tactical, opaque, and easy to overuse.