Portfolio management: 5 reasons why gold is the mainstay of sustainable savings

Portfolio Management: In today’s volatile economic environment, it is important for an investor to put their money into stable and safe savings instruments. However, for a sustainable portfolio, one should diversify one’s investment instruments in such a way that it continues to beat average inflation. Amid soaring inflation concerns, a recession in the US could weigh on growth in India in the medium term. Tied businesses could also be affected, and as a result, the stock market could sell off. While those with long-term financial goals should ‘buy down’, the same cannot be said for those trying to build savings in life. In such a case, having gold in one’s portfolio is supposed to provide a solid support for one’s money.

Below we list the top 5 reasons why gold is essential for sustained growth in one’s portfolio:

1]No financial expertise required: “Unlike stocks and mutual fundGold does not require a lot of financial expertise. Indians have been saving money in gold for thousands of years. Gold was a metal used to make coins in ancient kingdoms. It has been passed down as wealth for generations in the form of jewelry. Rich or poor, an individual or a country, everyone understands the value of gold,” said Sousthav Chakrabarty, Founder and CEO at Siply.

2]High fluid options: While building a savings portfolio, it is extremely important to consider the liquidity of your portfolio. Liquidity refers to your ability to convert your financial assets into cash at any given time. Investing in digital gold and gold ETFs allows investors to have a higher level of liquidity in their portfolio as it can be bought and sold in one click without roaming from the tom column post.

“Gold as a digital asset offers many benefits in this day and age where Indians are accustomed to one-click investments for quick money – convenient and instant buying/selling in quantities moderate; uncomplicated Abhijit Shukla, CEO & Director at Ethics.

3]Cost effective options: “As a strategic investment asset, the gold ETF is cost-effective compared to physical gold. Best used in an unprecedented time, the gold ETF offers diversification from Equity Holdings. Furthermore, a gold ETF is a hedge against a falling economy as prices will rise when interest rates fall.Known as a non-equity product, gold ETFs do not attract Securities Transaction Taxes – STT only applied by default on equity and equity products – improving the return on gold ETFs,” said Palka Arora Chopra, Senior Vice President at MasterTrust.

4]Savings available from Re 1: “No matter what your financial situation, the savings for gold investors don’t have to stop. With some small savings apps on the market, users can start saving in gold. for as little as 1. They can choose how they want to put a lot of money in gold every day, every week and every month.In time, each rupee will add up and one can make a decent amount of gold. Gold, a stable and safe savings asset, helps you with long-term wealth creation with a very accessible monthly cost,” said Siply’s Sousthav Chakrabarty.

5]Gold’s rate of return surpasses inflation: “Gold has enjoyed a CAGR of nearly 10% since 1971. It has outperformed a number of investment and savings options – from US Treasury bonds to commodities and the stock market matures. Even as money grows As a currency depreciates, gold remains a reliable store of value. Countries around the world hold gold reserves as a safeguard against inflation, deflation and other economic disasters.” , expert Siply said.

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