Investing in one asset class could be risky – times of india is it good to invest in gold

Investing in one asset class could be risky – times of india is it good to invest in gold In India, a country of savers, people mostly keep their money in bank FDs, buy insurance and/or gold and invest in PPF. Why should i buy gold now Government and private data show very few from this large pool of savers actually invest, that is put their money into financial assets which give returns higher than the rate of inflation, thus creating wealth. Again, among this small pool of investors, the approach to investing is mostly in bits and pieces, rather than in a well thought out manner where the total investible fund is distributed across several asset classes, called the asset allocation process. How can i invest in gold In India asset allocation should

ideally be between equities, bonds and fixed income products, and gold.

Historical data show that rarely has been the case when all of these three assets have risen or fallen together. Should you invest in gold or silver When equities rallied, in most of those times bond and gold have either remained flat or slid. Best way to invest in gold in india Then when bond rallied, equities and gold did not perform well.

Ways to invest in gold india And when gold prices shot up, the other two assets lagged behind. How to invest in gold market Now if an investor had a mix of all the three assets, in some proportion which matched his/her risk taking ability, such a mix would have given him positive returns in most of those investment cycles.

Is it good idea to invest in gold Seen another way, a superior performance of one of the assets would have more than compensated for the underperformance in the other two assets, fund industry officials say. Invest in gold pakistan Distribution of funds, which is available for investment for the long term, across several assets is called asset allocation. How to invest in gold bonds india This process could also be extended to include assets like real estate, commodities and other assets.

Invest in gold malaysia However, that would depend on the availability of investible funds with the investor and also the risk profile of the investor, mutual fund industry officials and financial advisors say. How to invest in gold through demat account “For most investors, it is advisable to have a simple multi-asset strategy where the funds are distributed among equities, debt and gold,” said a top official at a domestic fund house. Often it is seen that investor rush in to invest those assets which have performed well in the past few months or years. Should i invest in gold now 2015 However, that’s a wrong way of investing. Invest in gold etf online This is because once an asset has run up for a few months of years, the chances of the asset giving superior return in the next few years diminishes.

For example, if equities have done well in 2-3 consecutive years with the sensex and the nifty giving very strong returns, there is always a high chance for stocks to underperform in the fourth year. How to invest in gold in india online So if you also have bonds and gold in your portfolio mix, the underperformance of stocks in the fourth may not hurt your total portfolio much, financial planners say. Fund industry officials also pointed out that there are mutual fund schemes which have floated schemes which invest across these three asset classes. How to invest in gold through icici direct So rather than inexperienced investors trying their hands for a do-it-yourself asset allocation, they can invest in such funds which follow a multi-asset strategy for long term wealth creation, they say. “If the equity rallies, the model may go heavy on debt and the vice versa. Invest in gold online And to get the tax efficiencies, funds often use arbitrage opportunities in equities which mimic debt but allow the funds to enjoy tax sops of equities,” the fund industry official said.

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Best way to invest in gold in india Let’s work together to keep the conversation civil. • Parliament passes GST Bill, PM Modi says it will end tax terrorism The long-delayed GST Constitution bill was passed by Parliament on Monday, marking a historic step for tax reforms+ . How to invest in gold etf funds Prime Minister Narendra Modi said GST was “crucial” for ending tax terrorism besides reducing corruption and black money. • PM Modi slams attack on dalits: ‘If you want to shoot, shoot me’ Reserve Bank Governor Raghuram Rajan in his last monetary policy tomorrow may keep interest rate static as retail inflation continues to be above the comfort zone, experts say. Moving a step closer to form the country’s biggest private sector life insurer, the board of HDFC approved the merger of Max Life and Max Financial Services with its insurance arm HDFC Standard Life Insurance Company.