Should you invest in gold or fund your investment in mutual funds? Despite there being so many analytical articles it’s far from being an easy choice. There’s no definitive answer to the question of which investment option will give you the biggest bang for the buck. You can look up gold rate today Nellore or best mutual funds and you will get promising results in both. See more.
Hence, you can choose from a wide range of both types of assets, each with its own set of advantages:
Benefits of gold
1. Safe investment
Gold is a great long-term investment. It has been a haven asset for centuries and the primary reason that it has retained its value is because of its limited supply. When compared to other assets, it is considered a safe investment option because gold prices are not driven by political or economic factors like fiat currencies are.
2. Stable prices
When gold prices fluctuate, they do so based on demand and supply. The global gold supply is limited due to which it is considered a good hedge against inflation especially when inflation rates are high in an economy. To date, gold has always been an asset that has retained its value. Its value hardly ever depreciates, which makes it an excellent store of wealth. To confirm this you can just Google Pune gold rate or the rate in Bangalore and keep a track of the prices for some time and you will realizes that gold does in fact retain its value.
3. Trust of the people
When you take into account the fact that India’s rural population invests more than 50% of their annual income in gold even today, we can safely conclude that gold has been one of the most sought after investment instruments.
. Another reason why people invest in gold is that it offers easy liquidity. Gold can always be turned into gold jewellery gold coins or other such items and these can be used as a medium of exchange in times of emergencies So if you ever have to sell your investment at short notice, you will get good returns on your investment Physical gold is an asset whose value is universally accepted. No matter where you are in the world, you can easily convert physical gold into cash – and vice versa
5. Difficult to counterfeit
Gold is a rare element that cannot be created artificially, hence it can be mined from only limited areas and supplies are scarce.
Benefits of mutual funds:
Mutual funds allow you to invest in a basket of securities, thus reducing your risk exposure. A mutual fund collects money from multiple investors and invests that money in different stocks, bonds or money market instruments. This helps reduce risk to an extent as the impact of a bad investment is not borne by a single investor but shared among all investors in the scheme.
2. Convenience & Liquidity
Mutual funds offer convenience and liquidity to their investors and a wide variety of schemes are available to suit various investor needs. You can choose a scheme that suits your risk appetite and investment horizon. If you need your money back before the maturity period, you can redeem your units and get the proceeds within 2 days through an online transaction or within 5 working days at physical locations.
3. Professional Management
Mutual funds are overseen by financial experts who want to maximize the value of their investor’s money.