Investment: Gold or Mutual Funds? If you are investing on Akshaya Tritiya, then consider these things..

Today is the festival of Akshaya Tritiya. There is a trend of buying gold at this festival. Gold is associated with wealth. Gold is helpful for you in case of any kind of financial crisis in the future. That is why people have been considering gold as a good investment option for years. Gold is also bought on Akshaya Tritiya with the belief that there will never be a problem of wealth in the house in the future and prosperity will remain.

But in today's time, there are many other investment options available to secure your future, which can accumulate a lot of wealth for you in the future. Mutual funds are also one such option. If you are going to invest today in Akshaya Tritiya, then understand once well which option will be more beneficial for you in terms of future, gold or mutual funds. Know the advantages and disadvantages of both and then think carefully before starting your investment in Akshaya Tritiya.

What are the benefits of investing in gold?

Gold has been a reliable investment option for years.

It is considered a low-risk investment.

The price of gold also increases with inflation.

It can be easily bought and sold.

In difficult times, you can take a loan by mortgaging gold and meet your financial needs.

By investing in gold, you can diversify your portfolio.

Gold prices remain stable even during economic uncertainty and inflation.
Gold can be easily carried anywhere.

Like insurance, gold is also a companion in times of crisis. Gold supported many people during Corona.

In terms of investment, it is not necessary that you buy only physical gold, in today's time you can also buy digital gold or gold ETF. Digital gold can be purchased even from Rs 1.

Know the drawbacks of investing in gold.

The price of gold keeps rising over time, but it cannot compete with options like stocks or real estate.

It can be difficult to keep physical gold safely. If you have a lot of physical gold, you may have to rent a bank locker or other security service to keep it safely. For which a charge has to be paid.

While buying physical gold, you also have to pay a making charge. However, in today's time, the option of digital gold is also available, in which making charge is not charged.

Why invest in mutual funds?

Mutual funds are an investment where your money is diversified in the stock market, bonds, and other assets.

In this, your money is invested in many places, which reduces the risk.

Mutual funds can be redeemed immediately if needed.

In this, you get the facility to invest in small amounts through SIP.

The past records of mutual funds show that it has the ability to beat inflation. In the long term, a lot of money can be made from it.

Disadvantages of investing in mutual funds
This is a market based scheme, there is no guarantee of return in it. There can be losses if the market falls.

It is advisable to invest for a long period for good returns and it is important to be patient for this.

Mutual funds charge management fees.

There are many types of mutual funds. Usually, the investment made in it comes under the purview of tax. However, the ELSS scheme gives you tax benefits.

Gold or mutual funds, which option is right for you?

Both gold and mutual funds have their own advantages and disadvantages. Before investing, assess your financial goals, duration and risk taking capacity. If you want less risk then gold is a good option. But if you can invest for a long time for high returns and can also take a little risk, then mutual funds are better. Both can be made part of the portfolio for diversification.

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