Mumbai, May 2026 — In a strategic pivot that signals a shifting tide in the financial markets, Kalpen Parekh, CEO of DSP Mutual Fund, has moved a significant portion of his personal wealth out of gold and back into equities. Speaking on the latest episode of Mint’s Guru Portfolios, Parekh provided a candid breakdown of why the “safe haven” of precious metals had become too crowded for his comfort.

The Rotation: Gold’s “30-Year Run” in 12 Months

The headline of Parekh’s recent portfolio activity is the aggressive rebalancing of his gold holdings. After a spectacular run where gold and silver delivered between 200% to 400% returns in rupee terms over the last two years, Parekh noted that the asset class had essentially front-loaded “20 to 30 years of returns” into a single year.

“I don’t like to chase asset classes that have done very well in the last one to five years,” Parekh explained. Having seen his gold exposure climb to 22% purely through price appreciation, he has systematically trimmed it back toward 12%, rotating those gains into Indian and global equity markets.

Equities: Buying the “Normalization”

While many investors fear market volatility, Parekh views the recent “sideways” movement in Indian stocks as a healthy correction of previous excesses. He has moved capital into three specific hybrid strategies:

• DSP Value Fund: Targeting undervalued companies.
• DSP Multi-Asset Fund: Balancing domestic and international exposure.
• Equity Savings Fund: Providing a cushion of fixed income.

Parekh highlighted that sectors like Banking and Financial Services (BFSI) and Technology are now moving closer to “fair value,” offering a more compelling entry point for long-term compounding than the currently “overheated” precious metals.

The Global Lens: Looking Beyond India

A standout feature of Parekh’s portfolio is his high conviction in global diversification, which now accounts for roughly 25% of his holdings. He argues that investing isn’t about geography, but about the principle of “buying free cash flows, cheap.”

While the world has been obsessed with AI and US tech, Parekh pointed out that iconic consumer and core sector businesses in Europe and Asia have seen price corrections of 30% to 40%. Through LRS (Liberalised Remittance Scheme) funds, he is capturing these “great businesses at good prices” in regions like the Netherlands, France, and Canada.

The “Parking Lot” Philosophy

Despite the shift to stocks, Parekh remains a firm believer in Fixed Income, maintaining a 25% allocation. However, he doesn’t view bonds as a high-return engine. Instead, he treats debt as “investing oxygen”—a safe parking lot that provides the liquidity needed to “buy when there is blood on the street.”

“Fixed income is like a solid fielder in a cricket team,” Parekh said. “You don’t need a team of only pinch-hitters; you need the defensive players who protect the score when the fast bowlers are attacking.”

Bottom Line: Ignoring the Narrative

Parekh’s investment stance is a direct challenge to the “storytelling” of modern finance. He remains intentionally blind to monthly SIP numbers, FII (Foreign Institutional Investor) inflows, and election-cycle headlines.

His message to retail investors is one of radical discipline: the philosophy shouldn’t change just because the price does. By automating his discipline through hybrid funds and focusing on mean reversion, Parekh is betting that the most boring way to invest—rebalancing away from winners and into laggards—remains the most effective way to build generational wealth.