Are you investing more in Gold and silver rather than inequities such as real estate and Mutual funds? If yes, then you’re in a better gain this year with your hard-earned money. Gold has constantly been the safest place since this traditional avenue has always improved upon mutual funds, stocks and equities.
With 10.49% returns on Gold, it overpowers the Sensex that gives return only of 5.06% while Nifty earns 4.05% to the investors. Here it is important to note that another metal Silver earned good returns to the investors of 7.5%.
Gold and silver being one of the oldest investment wheels determine its price based on 24-hr market variations. Usually, In India, these expensive metal prices hike up during the festive and marriage seasons and it can be considered as the best passive investment in the volatile market. It is primarily known that Gold and silver used to be the currency of different places earlier. It still has its worth and serves as an easily liquefied asset.
With plenty of investments, it takes care of your systematic and organised financial conditions. Silver is comparatively less expensive than gold but its usage is higher in demands. Silver also serves as a better choice for small investments since it is not that expensive. Even if silver demand decreases, after a few years the price of silver might inflate hence it truly makes sense to invest in silver.
The equity, mutual funds and real estate have somewhat failed to impress the investors. The Sensex gained only 5.12% while Nifty gauged up by 2.2%. State Bank of India offers an interest rate of 6.50% for good six months on FDs. Real estate plays away longer waiting game for returns and its performance has comparatively gone down in lumps. Many of the investors have gone distressed with their money hung in delayed projects and are struggling to cope with the slowdown.
The mutual funds also have not lived up to the expectations. With large-cap equity funds giving a return of 3% this year and mid-cap equity funds giving a declining return of 4.6%, the small-cap equity funds have the probability of bringing a negative return of at least 10% which could be risky. To put in a nutshell, people who invest more in Gold and Silver walk on the safe line with positive inflation in returns.