- Kotak Mutual Funds' Nilesh Shah defended his positive stance on gold and silver markets
- He cited central bank buying, geopolitics, and diversification as key structural drivers
- Kotak turned more bullish on gold after Russia's foreign reserves were frozen in 2022
Kotak Mutual Fund's Nilesh Shah said markets reward humility and defended his long-standing constructive stance on gold and silver, citing structural drivers such as central bank buying, geopolitics and diversification needs.
In a post on X, Shah said precious metals have delivered a strong rally driven by these factors. He noted that since 2020, post-Covid, Kotak's monthly outlooks as well as its multi-asset allocation funds and fund-of-funds have consistently remained constructive on gold.
Shah added that the fund house turned more bullish in 2022 after Russian foreign exchange reserves were frozen, calling it a key inflection point for gold's role as a reserve and hedge asset.
He said Kotak highlighted gold's “shine” in its 2024 outlooks and has maintained a positive stance into 2025-26, while keeping allocations balanced given that gold offers no yield or intrinsic value.
Acknowledging that fund managers can be wrong at times, Shah said precious metals have been one area where their calls have held up. He also cautioned against judging market views based on old videos or selective clips, noting that investment views evolve as facts change and nuances are often missed.
Shah suggested that the best way to assess a fund house or fund manager's conviction is to look at actual asset allocation — particularly the exposure to debt, equity and precious metals in their multi-asset allocation funds.
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