Investors frequently engage in what Naren describes as anti-asset allocation by buying assets only after large run-ups occur. This trend was evident in January 2026, when combined inflows into gold and silver ETFs surpassed those directed into equity mutual funds. Silver consequently suffered a 27% correction following a massive 216% surge, mirroring similar performance-chasing seen in South Korea's Kospi index. Even so, Naren maintains a structurally constructive outlook on gold due to shifting central bank reserve practices.
Key points
Chasing past performance rather than accumulating corrected assets undermines the fundame…: Chasing past performance rather than accumulating corrected assets undermines the fundamental purpose of asset allocation.
Silver possesses high volatility akin to small-cap stocks and can experience sharp revers…: Silver possesses high volatility akin to small-cap stocks and can experience sharp reversals following major price runs.
Gold remains structurally viable over the long term because of ongoing shifts in central…: Gold remains structurally viable over the long term because of ongoing shifts in central bank reserve management.
Sources checked by our analysis pipeline: 1
That is precisely the investment behaviour S Naren, Chief Investment Officer of ICICI Prudential Mutual Fund, cautioned against at the ET Wealth Expo in Mumbai. He has a rather unusual way of describing it. Borrowing a term from the debt market, Naren calls it 'anti-asset allocation'.
In the bond market, AAA is the highest credit rating a security can receive. But Naren uses the acronym differently to make a point about investor behaviour. He calls it 'anti-asset allocation' because investors often mistake a strong past performance for an assurance of future returns.
"Asset allocation is buying after a correction in an asset class. And buying an unpopular asset class, I would call this asset allocation," the veteran fund manager.
The distinction, according to Naren, is particularly relevant in an investment environment where investors are increasingly drawn to assets that have already generated outsized returns. The problem is that buying into a popular investment theme is easy, while putting money into an asset that has fallen out of favour requires patience.
Indian enterprises have mobilized over Rs 10 lakh crore on average each year through debt and equity instruments during the past decade. To sustain this momentum, the market regulator is executing reforms to ease operational friction and accelerate public market access for diverse corporate entities. These strategic actions aim to balance rapid business capital formation directly alongside stringent safeguards for a swelling domestic participant base.
Gold prices in India have experienced a sharp retreat, with MCX gold futures dropping 2.5% in a week and falling 7.9% overall in October. Prices closed at ₹1,38,419 per 10 gram after beginning the month at ₹1,50,390 per 10 gram, while silver dipped to its lowest level of the year. Globally, gold faced its worst October decline since 2008, falling as much as 3.6% to $3,876.39 an ounce.
Indian benchmark indices rebounded strongly as robust institutional inflows lifted market sentiment despite ongoing concerns over crude oil prices and geopolitical tensions. Market analysts caution that further index advances face immediate technical resistance near key exponential moving averages. Consequently, strategic stock selection is favoring individual names displaying resilient chart patterns, strong volume, and moving average support.