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Author: Admin | 2025-04-28
Do you need to Invest in Gold?More than Rs. 2 lakhs of investment in physical gold demands for the PAN Card, whereas in ETFs, you shall have to open an account with a brokerage firm followed by a Demat account with the same firm. For investing in SGBs (Sovereign Gold Bonds), KYC required are the documents required to buy Physical gold (Aadhar, PAN, Voter ID or Passport).Why Should you Prefer Investing in Gold?For a conventional investor, the most important criterion is safety, liquidity and profitable returns. You can expect to meet all these criteria while investing in gold. However, some investors consider gold returns as extremely volatile but gold proves to be a safe haven in times of uncertainty for many investors. Let’s contemplate on some points that prove gold investment can be a wise decision:No matter what the rate of inflation is, returns on gold investment have always proved to be in line with it. In a nutshell, one can consider it is an inflation-beating investmentAnother major factor that calls for gold investment is liquidity; it provides excellent liquidity to the investorsThe Bottom LineEvery investment has benefits and drawbacks associated with it. If you are not in favour of holding physical gold, you can go for other alternatives ETFs, gold funds or SGBs. Although gold is not a passive investment like stocks and bonds that provide you with a regular income in the form of interests and dividends, it can provide you excellent liquidity and also beat inflation. Apparently, the advantages of investing in gold usually outperform the disadvantages. In short, all those investors who don’t need the funds in the short term can opt for Sovereign gold bonds and for investors who prioritize liquidity, can opt for gold ETFs and funds. Asset Management CompanyAxis Mutual Fund DHFL Pramerica
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