-
Calibrated Reallocation: Amit Jain says investors should gradually rebalance from gold to Indian large-cap equities instead of making a full exit.
-
Equity Opportunity: Improving earnings visibility and attractive valuations make large-cap stocks a strong choice for new investments.
-
Balanced Strategy: Maintain 8–10% gold for safety while focusing new capital on growth-oriented sectors like IT, FMCG, and PSUs.
Calibrated Reallocation: Shifting Focus from Gold to Growth
Amit Jain, Co-Founder of Ashika Global Family Office, believes that investors should consider a calibrated reallocation rather than a complete exit from gold. He explained that gold’s strong rally in 2025 reflected high levels of global uncertainty and risk aversion, not sustainable growth. As inflation eases and interest rate expectations stabilize, gold’s potential for further appreciation is becoming limited. Jain emphasized that this is the time to rebalance portfolios — not to abandon gold but to gradually shift some funds toward productive growth assets like Indian large-cap equities.
📈 Large-Cap Equities: The New Center of Attention
According to Amit Jain, large-cap equities are now emerging as the preferred investment segment. He noted that India’s economy is expected to grow around 7% in FY26, one of the highest rates globally. Corporate earnings are also likely to rise by 14–15%, driven by strong performance in the IT, FMCG, and selective PSU sectors. Jain pointed out that valuations remain comfortable, with the Nifty trading near 19.5 times FY26 earnings — below its historical average.
Among large-cap equities, Jain named Tata Consultancy Services (TCS) and ITC as standout picks, thanks to their solid balance sheets, consistent cash flows, and stable growth. He said these stocks represent the kind of quality leadership investors should seek during this market phase.
⚖️ Calibrated Reallocation: A Balanced and Disciplined Approach
Jain explained that calibrated reallocation does not mean selling all gold holdings. Instead, it involves adjusting the portfolio gradually. Gold, he said, continues to be a vital hedge against global risks and currency fluctuations, and investors should still maintain 8–10% exposure to it.
The main idea is to redeploy incremental capital or profits earned from gold’s recent rally into large-cap equities, where earnings potential and visibility are higher. This helps investors maintain a balance between safety and growth. “It’s not about abandoning safety; it’s about repositioning for disciplined growth,” he added.
💡 Large-Cap Equities: Role in a Balanced Portfolio
In today’s market, Jain recommends that investors maintain a diversified allocation. Roughly 55–60% should be placed in equities, primarily in large-cap equities within IT, banking, and manufacturing sectors. Around 8–10% should remain in gold to act as portfolio insurance, while the rest can be held in debt or liquid assets for flexibility.
This blend, according to Jain, protects investors during market downturns while allowing them to benefit from the next phase of equity market growth.
🔍 Calibrated Reallocation: What Investors Should Monitor
For those adopting a calibrated reallocation strategy, Jain highlighted key areas to monitor. He expects the IT sector to recover as global tech spending picks up and profit margins improve. FMCG companies are likely to benefit from rural demand recovery and lower raw material costs. He also sees opportunities in select PSUs — particularly in defense, capital goods, and energy — which are improving their balance sheets and offering higher dividends.
Investors should watch factors such as margin recovery in IT, rural trends for FMCG, and ongoing government infrastructure spending to assess the sustainability of the current market rally.
🧭 Large-Cap Equities: Managing Risks and Entry Timing
Jain acknowledged that entering large-cap equities too early could expose investors to short-term volatility. Global growth uncertainty, high valuations in certain segments, or delays in rate cuts could lead to corrections. To mitigate risks, he suggested investing through Systematic Investment Plans (SIPs) or phased allocations instead of lump-sum investments.
Choosing strong large-cap equities with healthy cash flows and leading market positions helps cushion downside risk. Retaining gold exposure and sufficient liquidity, he added, will provide protection during sudden market shocks.
🕰️ Calibrated Reallocation: Timing and Execution Strategy
For investors holding gold as a defensive asset, Jain advised a gradual and data-based reallocation. The right time to move toward large-cap equities depends on signs like stable global growth, steady Indian corporate earnings, and easing geopolitical tensions.
He suggested starting by shifting 20–30% of gold profits into high-quality Indian large caps, especially in IT, FMCG, and selective PSU sectors. This allows investors to keep their defensive position intact while positioning themselves for future growth in equities.
📊 Large-Cap Equities: Triggers for Validation
Jain said the success of this rotation will depend on both macro and micro factors. Key macro triggers include stable inflation, clarity on US interest rate cuts, and consistent GDP growth above 6.5%. On the micro side, continued corporate earnings expansion, improving credit demand, and steady foreign investment inflows into Indian large-cap equities would confirm the trend.
However, he cautioned that any renewed global volatility or inflation spike would require reassessment of the calibrated reallocation strategy.
✅ Conclusion
Amit Jain’s message is clear — calibrated reallocation is the smart way forward. Instead of completely exiting gold, investors should tactically move a part of their funds into large-cap equities that promise growth and stability. With India’s economy showing strong fundamentals and corporate earnings improving, large caps appear poised to lead the next growth cycle while gold continues to serve its role as a dependable hedge.
