The SIP investment fund would offer a return of between 13 and 15 percent if the investment is long-term, for example, for 20 years or more. Experts say that Gold SIP also benefit this song. Comparing the SIP of gold with the SIP returns of investment funds, Kartik Jhaveri, director of wealth management at Transcend Consulting, said: “A normal SIP of investment funds would offer a return of between 13 and 15 percent if the investment is long-term, for example, for 20 years or more. Similarly, in the case of Gold SIP for more than 20 years, the same return can be expected with a margin of between 0.25 and 0.5 percent on each side of the investment.
. They are partly right and partly wrong because they are unaware of the volume of investment that their fund manager is making in those similar actions. This negative correlation makes gold an excellent hedging instrument for investors, since asset classes (gold and stocks) are negatively correlated. Agarwal suggests that retail investors should maintain exposure to gold that constitutes at least 5 to 10 percent of their investment portfolio.
Therefore, investors with inadequate exposure to gold can invest in gold, preferably through SIP in gold funds. In the event of a strong correction in gold prices, investors can invest a lump sum in gold funds based on their asset allocation strategy. This will average your investment cost and also adjust your asset mix. Investing through SIP in mutual equity funds allows investors to accumulate wealth for more than 10 years.
With investment in MF, although the risk remains high, compared to gold, the volatility and risk associated with investment are reduced in the long term. Experts say that investors who seek to create wealth and, at the same time, are willing to take a little risk and invest for the long term should invest in MF. In this case, you regularly invest a fixed amount in digital gold. Investing through SIP is a convenient option for people who do not have a demo account, necessary to invest in gold ETFs.
A SIP in gold is also more affordable because the investor can deposit a fixed amount each month according to their convenience and budget. Investing in gold through the SIP will allow you to buy gold and accumulate your wealth on a consistent basis. He adds that investors can look for alternative investment products, such as InVit or REITs, with an investment return of 8 to 9 percent with low risk. Alternatively, to provide capital protection to the investment portfolio, you can invest in mutual debt funds, bonds or bonds launched by NBFCs or in peer-to-peer (P2P) lending platforms, such as Credit Fair Capital.
The SIP, or systematic investment plan, is a service offered to investors through which they can invest fixed amounts in several funds at regular intervals. However, it is now possible to buy or invest in gold digitally through Gold Mutual Funds and a gold exchange-traded fund (ETF). Even for the remainder of fiscal year 22, investment prospects remain challenging, as the conflict between Russia and Ukraine is intensifying and the United States and China are confronted with Taiwan. Tapse believes that, when it comes to gold as an investment product, investors should consider investing between 20 and 25 percent of the investable surplus in long-term SGB bonds and in GOLD ETFs for the short and medium term trading perspective.
Those with a shorter investment horizon should stick to the fixed-income asset class, as stocks can be very volatile in the short term. For example, investors who have financial goals of 5 years or more should invest in stocks or mutual capital funds, since stocks, as an asset class, outperform fixed-income instruments by a large margin over the long term. All a person has to do is instruct the bank to automatically charge a certain amount each month, without having to worry about the hassle of losing the investment. However, investing in gold in India is different from that in other countries, since buying gold is generally more sentimental than an investment activity for Indians.
Portfolio diversification, variety of options, experience in fund management and, most importantly, the benefit of capitalization have made mutual funds a popular investment channel, especially for novice investors. Nowadays, gold funds and gold ETFs are also available in SIP mode and are also gaining ground among investors. An investor who invests in the SIP investment fund can succeed and expect to fulfill some big dream in the long term. .