In a recent discussion, Vishal Jain (CEO of Zerodha Mutual Fund) highlighted the importance of low-cost index funds and exchange-traded funds (ETFs) as foundational elements of a long-term investment portfolio. With 18 products across various asset classes and over 11 lakh unique investors, Zerodha is focusing on building a sophisticated suite of investment options. Jain advocates for a strong emphasis on asset allocation, noting that a diversified portfolio can reduce volatility and enhance risk-adjusted returns. He pointed out that historically, assets like Gold have a low correlation with equities, making them valuable for stability during market downturns. While acknowledging the growing popularity of passive funds, Jain believes that both active and passive strategies have their merits, depending on individual investor needs. He encourages investors to build well-diversified portfolios aligned with their financial goals and risk tolerance, rather than chasing specific market themes. Jain also suggests a core-satellite investment approach, where the majority of funds are allocated to low-cost ETFs and index funds, while a smaller portion can target higher-risk assets like small and mid-cap stocks. He concludes that gold and silver ETFs can play a role in a diversified portfolio, but the allocation should be tailored to each investor's unique circumstances.