Tips to become rich: This gold investment can give whopping 25% profit, says expert
Tips to become rich: Investment in gold has been a traditional tool for Indians. Investing in gold is not only a good hedge against inflation, but it is also considered a pride investment too.
Tips to become rich: Gold and gold jewelry have been a traditional investment destination for most Indians. Investing in gold is not only a good hedge against inflation, but it is also considered an investment that raises the status as well as burnishes the buyer's pride. However, with changing times, many more options have emerged in gold and jewelry. While in previous times gold was bought and then hoarded at home, now people are actually looking to make more money from it via investments. New options like a gold bond, sovereign gold bonds or even exchange-traded funds (ETFs) are much safer and less risky than the traditional physical gold and gold jewelry investments, say experts.
Speaking on the risk involved in jewelry investment, Firoz Aziz, Deputy CEO at Anand Rathi Wealth Management said, "Jewelry investment has a high-risk factor as the jewelry market is non-regulated. So, all jewelry schemes floating in the markets are non-regulated and hence involve high credit risk." For those investors who want to invest in gold, Aziz advised going for gold bonds and the sovereign gold bonds can be a better option for investors. He also said that gold mutual funds are also available in the market. Both debt and equity gold mutual funds are there for a mutual fund investor who wants to invest in the gold asset class.
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On how to make a big profit from investment in a gold asset, Kshitij Mahajan, Co-founder at Complete Circle Consultants said, "Timing for investment in gold is considered best when the stock market is volatile or topsy-turvy. If someone takes this gold investment strategy in one's consideration, it would give around 24-25 per cent annual returns in his or her gold investment."
Mahajan also said that gold investment should be for the long-term and if the gold investment is one time, then it would give much better returns from a long-term perspective. He also advised gold investors to invest in electronic gold options like Gold ETF, Gold SIP, etc.
Mahajan went on to add that there are no maintenance charges like locker, the security of the gold jewelry etc. involved in electronic gold investments compared to the physical gold. Asked about some electronic gold investment plans that an investor can opt today Mahajan said, "Nippon Gold Savings Fund, ICICI Gold Savings Fund and Kotak Gold Savings Fund can be a good Gold ETF option for an investor."