March 21, 2011 by akhilendra
Old is still gold
In today’s investing community, investment broadly mean investment in equity i.e. investment in stock market directly by buying stocks or indirectly through Mutual Funds. But one of investment which is probably the oldest form of investment asset and was ignored in last few years in Gold.Though, in last few months it has again started shining and attracting investors. Gold always been one of the favorite of big investors but the average investors were only looking at equity market for investment.They were mainly targeting stocks, equity based mutual funds or ULIPs. But with the ULIP’s high charges were revealed and the way market has been behaving in last few months, they have also started hurting average investor. And trader have started shying away from the stock market, with this a new trend has emerged and that is investment in Gold.Gold is one of the oldest and finest investment instrument. It has consistently delivered better returns and now more and more investors are looking at Gold not as alternative but as their main investment. As more and more investors are looking for Gold, more avenues for investment in gold has emerged.Now there are variety of instruments available in the market to invest in gold. There are lot of fund houses which have started offering various schemes in this niche. Earlier gold was available in the physical form which had additional cost factors and difficult to maintain and store. Now there are GOLD Exchange Traded Funds,Gold in paper form and e-Gold which is available in demat form along with physical form.So far, Gold in paper form has been the favorite of the investors but ETFs and e-Gold is catching fast. With the increase in Demat accounts in the country, number of people investing in e-Gold and Gold ETFs have gone up significantly. At the moment, when inflation is soaring high and commodity prices are expected go higher. The interest in gold is like never before. But noone can write of the stock market and they will remain the main source of investment in the modern world.
But definitely, Gold is one of the best financial instrument to invest and a very effective to diversify the portfolio.
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