- Gold has given more than 32% return in last one year, tripled in 10 years
- Return on equity, FD and bond market has reduced by two to four per cent in the last ten years
- Gold returns increased more than 3 times in 10 years, know the reason
Investment in Gold
The Corona era where work trades have all stopped. The business has been hit hard. Cash shortage has increased with people. Millions of people have become unemployed. In such a situation, where to invest whatever is the accumulated capital of common people has become the biggest problem. The reason for this is the stock market is going through a period of instability. The debt and liquid markets are also slightly weak. There has been a huge reduction in the interest rates of fixed income or, say, fixed deposits.
In such a situation, there is only one segment left where investment can be made and better returns can also be expected. That is gold. This is a big reason for returns. Returns in gold are 5 to 8 times higher than the rest in the rest of the segment. Gold has given more than 32% return over the last year. Investors have made more than 3 times profit in the last ten years. That is why it is said that Indians like gold too.
No more than gold
In the last year, no one has given returns as much as gold. If you look at the figures, gold has remained at the top with a return of 32.37 percent in the last year. Whereas in FD, fixed deposits, this return is just 6.5 percent. At the same time, if we talk about the stock market, the Indian equity market has seen more decline than the boom in the last year.
The speculation was that BSE would cross the 44,000 marks after the Modi government came back. But after the arrival of COVID, there was a little recovery, but till date, it cannot touch the figure of 40 thousand. Therefore, only 6.24 per cent of returns have been seen in a year. On the other hand, liquid funds, which can be said in easy language, have seen a return of 4.48% in mutual funds in the last year. The special thing is that more people invest in mutual funds than gold. Whose share is more than 40 percent.
Gold returns were not so 3 years ago
If we talk about three years from now, then the returns in gold were not so much. According to the data, three years ago, gold returns were not even 20 per cent. While talking about the rest of the segment, three years ago, except one mutual fund, the rest of the segment had the same return. Liquid funds used to get a 6% return from three earlier, which gradually decreased. The return in gold was 19.74 percent. FD was 6.25 percent. At the same time, this return was 6.21 percent in the stock market.
The story from 5 years ago was something else
If we talk about five years ago, then the return in gold was not even half of what it is now. While people believed more in the stock market at that time, the returns in it were more than 8 percent. At the same time, due to the good interest rates of fixed deposits, people were also on that side and the return rate in FD was also quite good. Mutual funds were also seeing returns of more than 6.50 per cent. According to the data, five years ago, gold was seeing 14.36 per cent, FD 7.25 per cent, stock market 8.18 per cent and liquid fund 6.50 per cent.
The whole picture was changed 10 years ago
If we talk about 10 years ago, then the picture of both investment and returns had changed a lot. Even though at that time gold was more than the rest in terms of returns, but the difference was very slight. At that time, people were more confident in FD and liquid funds and the returns were also better than gold. Whereas at that time people were getting better returns from the stock market than at present. According to the data, 10 years ago, gold returns were 10.30 per cent. While the FD was seeing 7.75 percent returns. The returns in the stock market were 7.08 per cent. At the same time, investors in liquid funds were getting 7.71 percent.
What do you know?
According to Ajay Kedia, director of Kedia Advisory, there have been many things in the gold fever for the last three years. First, live political tension, second trade war, third, not only India but not good global GDP figures. Due to which there has been a steady decline in the equity market and investors have turned to gold. He further said that in terms of India, long-term capital gains have started in equity returns since 2018, since then the trend of investors has decreased in the stock market. At the same time, the interest rate of a mutual fund also runs like the rate of FD. In the last two to three years, there has been a decline in interest rates, in such a way, the returns in both asset years have come down. The effect of which is also seen in gold.
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