Kavitha Subramanian, Co-founder of Upstox, discusses reasons why investing in Gold is an Eternal Investment Choice

In India, the investment landscape is witnessing an upward trend. We are gradually transforming from a saver’s economy to an investor’s economy. A wide array of investment options (Stocks, Mutual Funds, IPOs, Gold and Fixed Income products); coupled with access to the right educational resources have helped investors broaden their portfolio and invest right. 

However, even with so many investing tools, gold is one of the oldest and most preferred investment choices for Indians, with a strong cultural history. Gold has seen a strong rally in the last few years, rising ~25% in calendar year 2023 and ~12% in 2024 (in INR terms). This explains the sudden rise in interest in gold as an investment option. There are several reasons why investing in gold is and will always be, a good option: 

●       Can be used as a hedge against inflation: As inflation rises, the purchasing power of currency declines. Throughout history, most major currencies have depreciated compared to gold over the long term. Gold thus, serves as a hedge against these inflationary pressures, offering a means to preserve wealth over time.

●       Relatively lower risks: Investing gold is one way to ensure that your portfolio is more resistant to market movements and fluctuations. Gold reduces portfolio volatility because micro and macro factors affecting other asset classes may not affect the value of gold. Meaning, its value is not directly tied to the performance of companies or economic indicators. As a result, even if the price or value of other assets in a portfolio fluctuates, gold acts as a saviour, ensuring that the portfolio value is not adversely affected.

●       Gold is a highly liquid asset: Liquidity translates to the ease of buying and selling in various forms. Since gold is one of the most liquid investment tools available, it can quickly and easily be converted to cash as per requirement. Due to this advantage, investors can turn to gold to protect their wealth during economic uncertainty.

For beginners, it is essential to understand the gold market: start small, diversify, and view investing in gold as a long-term investment. While Sovereign Gold Bonds are the most favourable tool for Gold investment, in case there is no tranch opening at a particular time, investors can invest in gold through Gold ETFs, and Gold Mutual Funds as well. However, while investing, it is essential for them to consider a number of factors: their overall investment objective, the time frame of investments, and a close eye on market trends.

For any investment journey to be successful and rewarding, it is imperative that investors keep all these factors in mind; cut through the noise in the market, and make well-informed and wise investment decisions.

 

Comments

Post a Comment

Popular posts from this blog

First DPL match was won by US Consulate Staff Team

Image
  ICWO - Indian Community Welfare Organisation  organized the First DPL- Diplomat Cricket Tournament for Embassy, Consulate & High Commission Staff on 10 th   August 2024 at Soka Ikeda College of Arts and Science for Women, Sethu Bhaskara Nagar, Madhanangkuppam, Kolathur, Chennai. T he event aims to create high level Awareness to STOP Child Abuse, Child Trafficking, Child Marriage & Child Labour in Tamilnadu and mobilize funds for intervention to address the same. A.J.Hariharan, Secretary – ICWO thanked both the US Consulate and Malaysian Consulate for their support and participation in the diplomate cricket tournament as to create an awareness about the Child Marriage, Child Trafficking & Child Labour and Child Abuse in Tamilnadu. The tournament has created huge interest among the players and the consul officials. We, ICWO have plan to organize similar event on 3 rd  May 2025. This time for men and women doubles badminton tournament. We emphasis there is a greater need for
Read more

A 25 Year Voyage Through Rhythm: A Priceless Guru Nanak School Reunion

Image
Reconnecting with long-lost classmates, Teachers and School staff after a quarter-century has stirred deep feelings of nostalgia and priceless emotions. Anticipation filled the air as we eagerly awaited the long-awaited gathering on 25 th of November2023 at Hotel WESTIN, wondering how many would join us for this special occasion. A month before the anticipated reunion, few schoolmates addressed as the Core Team took the initiative to meticulously plan and organize the event, leaving an indelible mark on each of our hearts. The immediate reaction was one of overwhelming excitement, with tears in our eyes and smiles lighting up our faces. As an added delight, we collectively revisited our beloved Alma Mater, reviving cherished moments etched deep within our souls.Our school held tremendous significance, even those who ventured down different paths, departing in 7th, 8th, 9 th or 10th grade, still share an unbreakable bond with our iconic establishment, GURU NANAK MATRICLUATION SCHO
Read more

Pondicherry Art Akademy Celebrates 13 Years of Artistic Excellence with 7th National Women Artists Group Show

Image
Pondicherry Art Akademy, renowned for its commitment to promoting artistry over the past 13 years, proudly presents its 51st event: the 7th National Women Artists Group Show. The inauguration took place on April 5th at 4 PM at Cholamandal Artists' Village in Chennai, marking yet another milestone in the Academy's illustrious journey.  The ceremony commenced with renowned Contemporary Artist.Sovan Kumar, Regional Secretary of Lalit Kala Akademi, Chennai, symbolically cutting the ribbon to officially inaugurate the event. Shri Kaliaperumal, Director of the Art and Culture Department, Puducherry, further elevated the occasion by illuminating the kuthu vilakku and unveiling the catalog, with the prestigious first copy presented to the renowned Senior Artist C. Douglas of Cholamandal Artists Village.   Esteemed artist Aashima Mahrotra, Joint Secretary of the Ministry of Railways and a participant in the show, graced the event as the chief guest, alongside distinguished guests Seni
Read more