Tata MF manager suggests 50:30:20 commodity allocation for long term
Tapan Patel recommends a portfolio split of 50 per cent gold, 30 per cent copper and 20 per cent silver.
Tapan Patel, Fund Manager – Commodities at Tata Asset Management, has suggested a 50:30:20 allocation to gold, copper and silver for investors building long term commodity portfolios, according to the Economic Times.
Patel noted that commodities are following individual fundamentals rather than general correlation. He stated that gold has lost its status as a defensive asset because higher US bond yields remain attractive despite market uncertainty.
Regarding copper, Patel said the long term demand prospect is bright due to usage in electrification and infrastructure. He mentioned that copper prices are trading near $14,450 per ton at LME, down from all-time highs of $14,875 per ton made in September 2026.
Patel explained that crude oil remains at firm levels due to supply disruption from the US-Iran conflict. He added that gold and crude oil are positively correlated in war-like scenarios based on historical data, though this correlation is absent in the current scenario.
The fund manager said investors should evaluate gold, copper and crude oil differently because of non-linearity. He noted that while rate hikes are negative for all three during economic distress, rate hikes may impact copper and crude oil positively during growth periods due to economic expansion.
