Category Management: In today’s volatile economic climate, it is important for an investor to invest money in stable and safe savings instruments. However, to have a consistent portfolio, one must diversify one’s investment instruments in such a way that it can beat the average rate of inflation. Amid rising inflation concerns, the slowdown in the US could hit growth in India in the medium term. Businesses are bound, may be affected, and as a result, the stock market may be in the heat of a sell-off. While people with long-term financial goals should ‘buy the dip’, the same cannot be said for those trying to build life savings. In such a scenario, having gold in one’s portfolio is expected to provide permanent support to one’s money.
Here we list the top 5 reasons why gold is a must for sustainable growth in one’s portfolio:
1]No need for financial expertise: “Unlike stock and mutual fundsGold does not require much financial expertise. Indians have been putting their savings into gold for literally thousands of years. Gold is a metal that was used to make coins in ancient states. It has been passed down as generational wealth in the form of jewelry. Rich or poor, an individual or a nation, everyone naturally understands the value of gold.”
2]High Liquid Options: While building a savings portfolio, it is extremely important to consider how liquid your portfolio is. Liquidity refers to the ability to convert your financial assets into cash at any given time. Investing in Gold ETFs and Digital Gold gives the investor a high level of liquidity in his portfolio as it can be bought and sold in a single click without roaming from pillar tom post.
“Gold as a digital asset offers several benefits in the present times where Indians are accustomed to investing with a click-of-a-button for quick dues – convenient and instant buy/sell in bite-sized amounts; Zero hassle free making charges, No hassles in physical gold storage, Assurance of the authenticity of gold as it is certified by agencies licensed from the government and highly liquid in nature, investor can easily buy/sell units anytime, anywhere It is,” said Abhijit Shukla, CEO and Director of Stellar.
3]Cost Effective Option: “Being a strategic investment asset, Gold ETFs are cost-effective as compared to physical gold. Best used during unprecedented current times, Gold ETFs provide diversification from equity holdings. Also, due to Gold ETF prices A hedge against a falling economy. Going up when interest rates go down. Known to be classified as non-equity products, gold ETFs do not attract securities transaction tax – STT only for equity and equity products – Improving the redemption yield on Gold ETFs,” said Arora Chopra, Senior Vice President, Master Trust, Palka.
4]Savings available from Rs.1 onwards: “No matter what your financial situation is, there is no need to stop saving for a gold investor. With a good number of micro-savings apps in the market, users can start saving in gold with as little as Re 1 They can choose how much money they want to invest in gold every day, week and month. Over time, each rupee adds up, and can end up with a huge amount of gold in front of one’s name Gold, a stable and safe saving asset, helps you with long-term wealth creation at a very affordable monthly cost,” said Sausthav Chakraborty of Sipply.
5]Returns on gold beat inflation: “Gold has given a CAGR of around 10 per cent since 1971. It has outperformed many investment and savings options – from US Treasury bonds to commodities and developed market equities. Even when currencies depreciated gold remains a reliable store of value. Gold reserves across the world are held across the country as a means to protect against inflation, deflation and other economic calamities,” said the Siply expert.
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