Is Investing In Gold is safer than Mutual Funds?

. Varying forms

Gold itself can be bought in various forms and sizes. Gold can be bought in coins, bars, chains and bangles and the various kinds of gold ornaments that are available. It can be bought in different sizes and there are different carats (metric unit used to measure mass in gold) of gold available so you can see which suits you best according to your finances.

2. Tangible Asset

Gold is one of the few assets that is tangible. Purchasing gold is much easier compared to purchasing other tangible assets such as real estate. Physically you can walk into any shop and purchase it and digitally, gold is just one click away. The fact that this investment has a ‘touch and feel’ aspect attached to it, it goes well with many Indian investors.

3. High Liquidity

Gold is highly liquid. If you have physical gold, you can walk into any jeweller shop and sell your gold. Virtually, different platforms have different rules but you still get an early redemption on your investment if you do not want physical gold on delivery but only the money value.

4. Does not need technical research

With gold, you can just check the daily value of the commodity and buy/sell in accordance with your finances. You do not have to research into the commodity itself. However, you do need to do minimal checks on the authenticity of the jeweller and his/her business in case of physical gold just to prevent yourself from getting duped.

Investing In Mutual Funds Market risk

Mutual funds carry the market risk because they are linked to asset classes like equities and bonds. Equity funds are riskier and more volatile than debt funds. However if held for longer durations , say 7 to 10 years, the law of compounding helps you to earn high returns on mutual funds.