How gold investments influence your financial status
How gold investments influence your financial status. why
I choose this topic because this is an important part of investments,
so I thought I wanted to share something about this with you. Investment is the
most important part of every financial person, which kind of investment can do?
This is the common confusion for all beginner investors. Most Indian peoples
buying gold jewels but they considered that like investment, this is the common
mistake doing most of the persons. Buying gold it’s not an investment it’s just
like a liability why because, for example if you bought gold you have to make
sure the safety for that, here you have to communicate with your bank then you
have to give some charge for that, here your cost getting higher. So here
you have to understand one thing the buying a gold-like buying a liability.
Here you have to understand the most
important thing, the gold is an equivalent
of cash, why because the RBI ( Reserve
bank of India) requires reserve gold for printing cash, so gold is one of the
valuable assets. Here you have to understand the differences between bought gold
and investing in gold. After reading this blog you will understand which is best bought gold or investing in gold.
Gold in investors point of view
Smart investors can’t invest in gold why because
that will not generate income. Investors get income from shares and bonds,
so most investors will invest only in index companies in the stock market.
At the crashing time of the market, the investors will invest in gold why because
the gold rate will go higher in that time. This is one of the strategies of the
investors.
How can invest in gold?
How can invest in gold this is the common question of
most beginner investors. Here you have to understand about some investment plans,
ETF (Exchange-traded fund) is the best option for gold investing. Here you can
invest in gold at a lower cost.
Advantages of paper gold
·
Low cost
·
You can
sell anytime
·
Safer
·
No
transaction expenses
·
Low
risk
·
No need
locker
Paper gold is the best asset for investing and also you have to understand one major advantage of
this. At the time of selling your gold discount will deduct from selling amount this is one of the disadvantages of physical gold. at the same time in paper gold, you will get that date exact value of gold. so here you have to decide which is the best physical gold or paper gold.
Sovereign gold
bond scheme
This is the one of
the paper bond scheme issued by R B I (Reserve bank of India) this bond publishing
on the financial year. This document has the exact value of the gold you can choose this scheme in the future you will get more return from here. you can buy this scheme very
effortlessly by banks, you have to subscribe for this scheme then your bank will
give you bond for that, That’s your document of this scheme.
Tax benefit
Here R B I have given 8 years, after 8 years that
scheme will mature. At the ending date of that scheme amount will credit to your account. Here 0-5
years is the locking period you can’t withdraw that scheme in those periods. Within 5-8 years you can withdraw your scheme then you will get that period exact
amount. But here you have to conscious about tax. After 8years you will get the full
amount of that scheme without any taxes but within 5-8 years will you
withdrew that scheme you have to pay tax for that. This is the
advantages and disadvantages of this scheme. additionally
2.5% interest is given for this scheme
by R B I this is also a major advantage of this scheme.
Gold mutual fund
Gold mutual fund. You have to understand this
why because most people can’t directly investing in the stock market. Most people investing in mutual funds. that’s also the best investing option. You can
also invest in gold in a mutual fund by S I P plan to make a good return
in the future. mutual fund has more schemes you can choose your valuable
investment plan.
Conclusion
I hope this content
you understand well. You have to decide buying a gold as a jewel or paper gold
which is the best one and also you can decide your investment plans. Try to make investments
in stock markets or mutual funds, golds, etc. you have to choose your best
investment plan but that plan should give you a return.So you have to conscious here
about that.
I hope this blog will help you
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