If you want to diversify investments, invest in mutual funds. But if you want a long-term asset that you can liquidate in a short time, invest in gold. The best strategy is always to spread your investments across different schemes and asset classes. Investing in gold or allocating mutual funds depends on the investor's risk tolerance.
It's generally true that gold doesn't offer similar returns to stocks. Therefore, as investors, mutual funds offer better long-term returns, since they are tied to the market. But since gold doesn't lose its value over time, a small part of your wallet may be in gold. In times of crisis, this small portion can provide good coverage and support the overall portfolio.