New Delhi: Chief investment officer of ICICI Prudential AMC, S. Naren, has warned investors to be cautious about investing heavily in silver and other precious metals after their sharp rise in recent times.
Speaking on the current market outlook, Naren said gold and silver should not be treated as standalone investment options. He pointed out that these metals have seen very strong rallies over the past year, and such fast gains can sometimes lead to overconfidence among investors. When prices rise mainly because of excitement and momentum, there is a higher risk of sudden falls.
He advised investors to avoid putting all their money into one asset such as silver. Instead, he stressed the importance of asset allocation, which means spreading investments across different options like equities, debt and other instruments based on one’s risk capacity and time horizon.
Naren said Indian equity markets are likely to perform better than many global markets in 2026, supported by relatively stronger economic fundamentals. He added that investors can consider maintaining exposure to stocks but should remain selective and disciplined.
He also cautioned that parts of the small and mid cap segment appear expensive and investors who have made good profits in these areas should think about protecting their gains rather than chasing further rallies.
Market experts say recent movements in gold and silver prices show that these commodities can be volatile after big rallies. This supports the view that investors should not rush into precious metals only because of their recent performance.
The key message from Naren is that investors should avoid chasing trends and instead follow a balanced and long term approach to investing. By diversifying across different assets, they can reduce risk and improve the stability of their returns over time.