Gold vs SIP: Which is the best investment option, what are the advantages and disadvantages of both? Learn everything here.

News Topical, Digital Desk : Mutual fund SIPs and gold are both popular investment options for investors. We've been investing in gold for centuries, but we've only recently begun to trust mutual funds. However, it's important to note that mutual fund returns depend on stock market fluctuations, so they can fluctuate. However, gold is considered a safe investment option. The chances of negative returns are low. Money invested in gold often grows. Let's understand the pros and cons of both to see which is better for you.

Benefits of sleeping 

Whenever global instability increases, people flock to gold. Gold is considered a stable investment option. In our country, gold is not just an investment vehicle, but is also purchased for traditional purposes. 

You can get an idea of ​​the returns you can expect from gold by noting that just last year, the price of 24-carat gold was around ₹70,000 to ₹80,000. However, now its price has reached around ₹1,20,000 to ₹122,000. 

However, this year gold has delivered even better returns than expected, a return it hasn't delivered in many years. 

Today, you don't need to buy physical gold to invest in gold. You can also invest in gold through ETFs or gold mutual funds. 

Loss

• If someone buys physical gold, they will have to pay a 3% tax, making charges, etc. Gold coins also incur making charges, although they are not as high as gold jewelry. If you want to avoid making charges, you can purchase gold bars. 
• Physical gold is difficult to store and is always at risk of being stolen. 
• You also have to pay various charges for investing in Gold ETF or Gold Mutual Fund. 

Benefits of SIP

• Mutual fund SIPs allow you to invest money in installments. Today, you can start investing with as little as ₹100. 
• Mutual funds offer a minimum expected return of 12 to 14 percent, although this return varies depending on market fluctuations. 
• You can also invest in gold mutual funds through SIP. 

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