New Delhi, June 16 -- When geopolitical tensions rise, investors often gravitate towards assets perceived to be safer. The recent US-Iran conflict was no exception. Concerns over oil prices, inflation and currency volatility pushed many investors towards gold, while others increased exposure to international mutual funds as a hedge against potential rupee weakness.

Now, with the two countries reaching a peace agreement on 15 June and markets beginning to price out some of the geopolitical risk premium, a new question has emerged: should investors unwind those positions?

Experts say investors should be careful about making portfolio decisions based on the resolution of a single event. While the peace deal could support the rupee and redu...