Kumari Palany & Co

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Should you invest on mutual funds or gold for safe returns?

Posted on: 11/Aug/2018 4:14:00 PM
Earning and expenditure should never be equalized on a zero scale when it comes to financial safety. Savings entirely determines the re-iteration of hard earned money for any individual, family or institution. In Indian scenario gold investment plays a major role in the domestic categories involving women beauty enhancement and marriages. Also the quick loan produced by the yellow metal finds a prominent role of investment in every households of the nation.

Investment on assets like gold can help largely in the times of urgent cash flow requirement but for a long term return scheme the option gives you very poor reversals. BSE Sensex range comparison with the increasing gold rates clearly forms an imbalance in terms of return on investment. The present rate of gold comes around Rs 30,500 for 10 grams with the whopping increase of the Sensex rate 38,000. As the Sensex points grew over the past two decades gold rate fluctuated correlated with world economy.

So the investment plans are nowadays redirected from assets to mutual funds that paves way for best returns and security. Prices of gold went only up to 7.5 percent including the average inflation whereas the mutual fund investment has offered CAGR gradual upwards of 15 percent. The mismanagement of a particular solid asset can affect the returns in multiple ways. On the other hand investing on mutual funds went up rapidly from Rs 5.29 lakh crore in the year 2011 to Rs 23.57 lakh crore till June 2018. On a collective note investing on assets can get influenced from exterior consequences reducing the returns but the mutual funds shows the gradual development in India indicating a positive investment choice.