It has been observed that when it comes to start invest or save money for our future prospect we basically focus the traditional means i.e. go for fixed deposit or any other instrument which block our fund. But human perspective is to safeguard so there psychological status says to invest and forget. But have we ever thought that whatever means we are choosing are they beneficial for us in near future or not? The answer is NO the reason behind it is we never do what we want we always what other said;
In old days our great grandparents said to invest in land, later grandparents started to invest in gold (physical form) later on the scene is been changed many new means were available in market like shares, bonds, mutual fund, government bonds etc.
If we go in past 80’s or 90’s people those are literate were making investment in proper manner like managing a portfolio. Only a class of limited peoples were investing in shares, rest other peoples are still unaware of it. No One had ever thought to enter in stock market as a place for investment; the mentality has been set that stock market is a place of speculation, which drags people to stay from it.
It has been observed that people’s those who had invested in physical gold are satisfied but they are not having a regular source of earning , because whenever you required cash you have to sell that piece of gold in the market, which would be sold out with less of its purchase value i.e. depreciation is been charged on it. Secondly when the amount which we had spend to purchase that much quantity of gold is been blocked, Apart from that as compare to shares the fund always remain liquid, second whenever require we can sell the stocks and can get recover our money and it is a best source to kept our investment liquid which can be useful any time when required.
It has been observed that still in India investors are focusing to invest in gold rather than shares just because they lack knowledge and secondly they thought off quick money making, but the thing is that we are focusing on investment to secure future not to get just money double. So this being the first basic reason why investing money in gold is not suitable then that of stocks.
The other reason is that keeping physical gold in biscuits form at home will take legal action and may cause high tax penalty and even that gold will be seized by the tax authorities and you will never get it back, so it’s better to invest in a company where you with get proper returns rather than investing in a biscuit …
Though it is yet observed that people are interested to invest in gold rather than preferring shares of the companies; for that they are having option to invest in Government Gold Bonds Gold ETF etc which give them a chance to invest in gold along with that there fund will remain liquid and they will receive a proper return annually. Secondly we are been safe of paying wealth tax & keeping gold in our home in biscuits form which could be seized by Income Tax department if kept more than the prescribed limit or quantity or else can be stolen by thieves, but keeping it in the form of bonds will let you satisfied psychologically that we had invested in gold though it is I the form of bonds or paper (gold etf’s).
(Written by Anirudh Sharma)
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