Tata Mutual Fund Favors 70:30 Gold-Silver Allocation Over Medium to Long Term

Tata Mutual Fund's August 2026 view is bullish on both gold and silver over the medium to long term, but recommends a higher allocation to gold due to its defensive characteristics and relatively lower volatility.

The fund house suggests a 70:30 allocation to gold and silver, with investments staggered rather than made in one go. This means that investors should use periods of market weakness to gradually build strategic gold exposure and adopt a staggered investment approach for silver, particularly for those with a medium- to long-term horizon.

The report highlights the importance of central-bank demand, which has been increasing due to the growing need for portfolio diversification. Central banks are still buying gold, with official-sector purchases rebounding to 289 tonnes in the second quarter and reaching a total of 345 tonnes during the first half of the year.

The report also notes that silver's investment story is potentially more exciting but also considerably more volatile due to its industrial applications. The Tata Mutual Fund framework suggests that gold provides stability, diversification, and defensive allocation, while silver offers higher volatility and industrial growth exposure. Therefore, the fund house prefers a 70% gold and 30% silver allocation within a precious-metals portfolio.