Freecharge's video: Gold Investment Options - Types and Its Benefits Freecharge Hindi

In this video, we’ll discuss the reasons you should invest in gold, options to invest in gold, risks of investing in gold, and other aspects related to gold. So you can know if investing in Gold is right for you and what option to choose from the ones available. Why Should You Invest in Gold? There are ample reasons why investors should invest in gold. Given that its relevance and popularity has stayed intact across generations, there are enough benefits of investing in gold that are known to us now. Let’s have a look at them. 1) Protects From Inflation: Gold acts as a hedge against inflation.It has been witnessed that whenever the stock market falls, gold prices go up. This pattern propels people to buy gold on the safe side to use it as a shield at the time of financial uncertainty. 2) Tangible and Liquid in Nature: People feel safe when they see the asset in front of their eyes after buying or investing in them. This goes the same with gold as well. Gold is one such asset where once you purchase, it stays with you for a lifetime. When it comes to liquidity, gold is at the forefront when compared to most of the asset classes. 3) Acts As A Savior Against Financial Crunches: At times, people need some quick cash to meet their emergency needs like medical expenses, getting financial aid at the time of job loss, etc. Now, those who have already invested in gold benefit in distinct ways. For instance, you can put gold as a collateral to get a loan from a financial institution or a bank. Hence, whatever be the economic condition, investing in gold gives you a cushion against emergencies. 4) Portfolio Diversification: There are numerous investment avenues in the market like mutual funds, stocks, including gold. Putting money in multiple asset classes helps investors to divert the risk and diversify their portfolios. Generally, Gold has a negative correlation with other asset classes, and hence it’s a perfect investment avenue for diversification purposes. Adding gold to your investment profile not only keeps your portfolio balanced, but also reduces the volatility created by other assets. Gold Investment Options The simplest and easiest form of investing in gold is directly purchasing gold from the market. However, with the evolution of technology, some other options are also available to invest in gold digitally. These options are in fact gaining much popularity among investors given the benefits they provide over physical gold purchase. Buying gold digitally eliminates the primary concern of safety and storage associated with physical gold purchase, among other benefits. So, let’s look at each of these options to invest in gold digitally in detail. Digital Gold: Digital gold is a virtual method of buying and investing in gold. without having to physically hold the metal. Investors can benefit a lot by investing in digital gold. For instance: You don’t need a storage space Higher liquidity compared to physical gold. You can buy digital gold via online platforms from anywhere and anytime. You can buy or invest in digital gold from as low as Rs. 100. Gold ETFs: Let’s first understand what are ETFs? Commonly known as Exchange Traded Funds, as the name suggests, they are a bunch of securities traded in the market to buy or sell like other assets. ETFs track a particular index, and the fund performance is based on the index movements. Gold ETFs are just the same. They track physical gold and are listed on NSE and BSE for trading like stocks of other companies. This again is a digital form of investing in gold. To invest in this Gold ETFs, every investor should have a demat account. Sovereign Gold Bonds: SGBs or Sovereign gold bonds are another alternative investment to physical gold. These bonds are issued by the RBI at the behest of the government. Investing in SGBs not only delivers capital appreciation but also gives interest and portfolio diversification as well. Plus, there are no additional costs and risks involved for making, storing, and designing. Upon maturity, you get the market value returns along with interest on the investment. Investors can also use SGBs as a collateral to borrow loans from the banks. Gold Mutual Funds: Gold mutual fund is like any other mutual fund investment. Here, the assets are parked in gold reserves, gold mining company stocks, etc. Thanks to gold’s high liquidity, you can always liquidate the asset class whenever required. Furthermore, people can benefit from the cushion that gold offers during volatile markets. The minimum investment in gold mutual funds starts at Rs 100. 👉Download Freecharge App: https://frch.in/k9HEcmfbjrb 👉Visit us: https://www.freecharge.in 👉Follow us on: Facebook: https://www.facebook.com/Freecharge Twitter: https://twitter.com/Freecharge Instagram: https://www.instagram.com/freechargeofficial/ LinkedIn: https://www.linkedin.com/company/freecharge-in/