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Monday, December 6, 2021

This festival season plans are being made to invest in gold, so keep these six things in mind, you will also be able to earn more profits.

Investing in digital gold instead of physical gold would be right. From January to October, gold has given a return of about 32%.

People in the country buy gold on festivals for quite some time. Many people have started investing in gold funds or digital gold instead of gold coins or bars/biscuits. Experts believe that investing in gold is good according to the diversification of your portfolio. From January to October this year, gold has given around 32% returns. If you too are planning to invest in gold, then we are telling you the 5 things that you should keep in mind.

1. Invest in digital gold, not jewelery

Indian women love gold jewelery but it is not the right investment option. When gold was cheaper, buying gold bangles, necklaces or other jewelry was considered a good option at first, then people did not have much investment options. But today there are many options for investing in gold. Investors can buy / sell gold electronically through the Gold Exchange Traded Fund (ETF) and gain arbitrage gains (profit from buying from one market and selling in another market). Through ETFs, gold is bought in units, where one unit is of one gram. This makes it easier to buy gold in small quantities or through SIP (Systematic Investment Plan).

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2. Invest in sovereign gold bonds

You can also invest in sovereign gold bonds. The central government is issuing sovereign gold bonds. Its 7 series have been released and the eighth series will come on November 9-13. If you are planning to invest in gold this Diwali then it will be beneficial for you to invest in it. Sovereign gold bonds also offer a fixed interest of 2.50 per cent every year on the issue price. This money is automatically deposited in your account every 6 months. You do not get such an advantage over physical gold and gold ETFs.

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3. You can also invest through Gold SIP

Like mutual funds, a systematic investment plan (SIP) can be started in gold too. With this an amount of Rs 500 can be invested in gold for a long time. The SIP amount is automatically deducted from the bank account. A Demat account is not required to invest in Gold SIP. In this, many companies issue Gold Fund of Funds, in which you can also invest through SIP. You can invest in Gold SIP through any fund house.

This festival season plans are being made to invest in gold, so keep these six things in mind, you will also be able to earn more profits.

4. Check for purity before taking physical gold

If you have made up your mind to invest in physical gold, then it is important to be careful while buying gold, because it is not easy to identify real (pure) gold. But by taking some precautions, you can avoid buying the wrong thing. When buying gold, be sure to consider its quality. It is best that you buy gold by looking at Hallmark. Hallmark is the government guarantee. 24 carat gold is considered the purest gold, but its jewelery is not made, because it is very soft. 22 carat gold is commonly used for jewelery. In such a situation, keep in mind that the jeweler is not charging you a 24-carat price.

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5. Gold ETF’s craze increased among people

Gold ETFs have not seen much uptrend for some time. However, its craze among investors has increased in the last few months. The Gold Exchange Traded Fund (ETF) has shone brightly in the Corona era. Investment in Gold ETF has increased for the fifth consecutive month. A total investment of Rs 908 crore has come in August. It has a total investment of Rs 5,356 crore till August this year.

6. Limited investment in gold is beneficial

Even if you like investing in gold, you should still invest in it. According to experts, only 5 to 10 percent of the total portfolio should be invested in gold. Investing in gold during a crisis can give stability to your portfolio, but in the long run it can reduce the returns of your portfolio.

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