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India Today
16-07-2025
- Business
- India Today
Is gold losing its shine? Here's why fewer people are investing in the yellow metal
For generations, gold has been every Indian family's trusted treasure. From weddings to festivals, buying gold symbolises pride, wealth and security. But times are changing fast. Many people are now rethinking their age-old love for yellow metal. So, is gold really losing its charm? Let's have a closer PRICES KEEPING BUYERS AWAYGold prices are hovering close to record highs. Today, at about 9:10 AM, MCX Gold August 5 contracts were up 0.19% at Rs 97,400 per 10 an average middle-class family, even a small piece of gold jewellery now feels like a huge expense. Many people prefer to spend that money on things they can use daily, instead of locking it away in a price surge has also made investors wary. 'With gold prices at close to an all-time high and with increased volatility, the sentiments remain mixed – while some investors are uncomfortable investing at the elevated price levels, others are looking to make the most of price falls,' says Nilesh D Naik, Head of Investment Products at (PhonePe Wealth). The figures paint a clear picture. According to the World Gold Council, India's jewellery demand fell by nearly 25% year-on-year in the first quarter of 2025. 'The jewellery demand in Q1 2025 was around 71 tonnes compared to an average of 180 tonnes in the previous two quarters,' adds INVESTORS NOW HAVE MORE CHOICESOne big reason for this shift is that younger investors have new choices. Stocks, mutual funds, SIPs and even crypto are pulling them in. 'With the increasing awareness about different asset classes and ease of access, the preference for equities has significantly increased among younger investors,' explains young people feel these options can grow their money faster than gold ever could. Unlike older generations, they don't see gold as the only shield for tough to Santosh Meena, Head of Research, Swastika Investmart Ltd., "The overall outlook for gold remains bullish, driven by rising global uncertainties such as US tariff tensions and growing scepticism towards the US dollar among central banks. The shift in central bank reserves away from the dollar is acting as a major tailwind for gold, reinforcing its status as a safe-haven asset."CHANGING PRIORITIES, CHANGING TRADITIONSBuying gold was once linked to family pride and status. Now, many youngsters see gold jewellery as old-fashioned. They'd rather spend on travel, gadgets or new families still buy gold for weddings and special occasions, they are spending less than GOLD GAINS GROUNDInterestingly, physical gold may be losing its shine, but paper gold and digital gold are becoming popular. Gold ETFs (exchange-traded funds) and digital gold give people an easy way to invest without worrying about lockers or safety.'There's rising acceptance for gold exposure through products such as gold ETFs/ funds and digital gold among younger investors,' Naik points prices dipped in June, investors didn't waste time. Net inflows in gold ETFs reached a five-month-high, and folios rose by over 40% in a year, from 5.4 million in June 2024 to over 7.6 million in June 2025, Naik YOU BUY, SELL OR HOLD?With gold prices at record highs and volatility in the market, investor sentiment is mixed. "It's better to stick to asset allocation when investing in gold. Gold can be volatile, but it's a good hedge against inflation," Naik suggests keeping at least 5–10% of your portfolio in gold because it often moves differently from stocks and provides a safety cushion in tough SHINE IS CHANGING, NOT FADINGIn the end, gold is not disappearing from Indian households. It still gives comfort when markets fall or inflation eats away savings. But it's clear the way people buy gold is bangles to bytes, India's gold story is being rewritten, and this time, the locker might just be a smartphone.- Ends
Time of India
29-06-2025
- Business
- Time of India
How to recover home loan interest through smart investing
Taking a loan is often considered detrimental to one's financial well-being, primarily due to the burden of paying interest on the borrowed capital, which often impacts one's financial plan. Most experts, therefore, advise against opting for a loan to buy an expensive asset and rather suggest accumulating the money needed before making such a purchase. While such advice might be appropriate when it comes to purchases that are classified as 'wants', for things that are classified as 'needs', it's often difficult to avoid availing a loan. A house purchase is a classic example - many people who value the security and stability that comes with owning a house often do not mind availing a loan to buy a house. However, this doesn't take away the pain of making interest payments over the tenure of the loan, which often tends to be quite long in case of a home loan . For example, if you take a loan of ₹20 lakhs over 20 years at an interest rate of 9% p.a., the total interest amount that you will end up paying over a 20 year period will in fact be higher than the amount you borrowed. The chart below shows the break up of the principal repayment and interest payment on such a loan. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Play War Thunder now for free War Thunder Play Now Undo (Author of the article Nilesh D Naik is Head of Investment Products, (PhonePe Wealth))
India Today
24-04-2025
- Business
- India Today
Gold vs mutual funds: What should you invest in for better returns?
If you're thinking about where to put your money, whether in gold or mutual funds, then you're not alone. Many people wonder which of these two options can give better returns right now. Both are popular, both have their own strengths, and both work A SAFE HAVEN IN TOUGH TIMESGold is often seen as a safe investment. When markets are shaky or inflation rises, many investors turn to gold. That's because gold tends to hold its value and even grow when other assets to CA Ruchika Bhagat, MD, Neeraj Bhagat & Co., 'Gold, traditionally seen as a safe-haven asset, can be a good hedge against inflation and economic uncertainty. Through digital options like Sovereign Gold Bonds (SGBs) or Gold ETFs, investors can systematically invest in gold with ease.' The yellow metal recently surpassed Rs 1 lakh amid growing tension around the world and trade war between the US and to Nilesh D Naik, Head of Investment Products, (PhonePe Wealth), 'Given the recent developments around trade tariffs, dollar weakening and the geopolitical uncertainty, gold has regained the spotlight.'But here's the catch, gold doesn't pay you any interest or dividends. You earn only when the price goes up, and you sell it at a profit. Also, gold prices can be unpredictable in the short term. They may rise quickly and drop just as long-term returns have historically lagged behind equity mutual funds, and it doesn't generate income, only capital appreciation,' said CA Ruchika FUNDS: A GROWTH-ORIENTED CHOICEOn the other hand, mutual funds, particularly equity funds, are linked to the stock market. When the market does well, your mutual fund investment can grow faster than gold. Over the long term, equity mutual funds have given strong returns, often beating inflation and other traditional Ruchika Bhagat stated, 'Mutual funds, especially equity-oriented ones, offer exposure to a diversified portfolio of stocks, managed by professionals. Over the long term, they tend to outperform gold in wealth creation, thanks to the power of compounding and market growth. SIPs in mutual funds are particularly effective for disciplined investing, rupee cost averaging, and harnessing market volatility.'TAX IMPLICATIONS: GOLD AND MUTUAL FUNDSCA (Dr) Suresh Surana said, 'Prior to 23rd July 2024, if gold capital assets are sold within a holding period of 36 months, the gains are treated as short-term capital gains and taxed at the individual's applicable marginal slab rates. If such asset is held for more than 36 months, the gains qualify as long-term and are taxed at 20% u/s 112 with the benefit of indexation.'advertisementOn the other hand, if you hold listed equity mutual fund units for over 12 months before selling, the profits are treated as long-term capital gains; otherwise, they're considered short-term gains, he added.'The short-term capital gains would be taxed at the rate of 15% (enhanced to 20% w.e.f. 23rd July 2024) u/s 111A of the Income Tax Act ('IT Act'). The long-term capital gains are taxed at 10% (enhanced to 12.5% w.e.f. 23rd July 2024) u/s 112A of the IT Act provided such long-term capital gains exceed the threshold limit of Rs. 1.25 lakh in a financial year (previously Rs. 1 lakh prior to Finance (No. 2) Act 2024),' Surana LOOKING BETTER RIGHT NOW?At the moment, gold is performing well because of global worries and inflation concerns. But experts believe that if the market becomes stable and interest rates fall, mutual funds, especially equity ones, could bounce back strongly.'For most investors, mutual funds should be the core SIP choice, especially for long-term goals like retirement or children's education. Gold can be a complementary asset, perhaps 5–10% of your portfolio, for diversification and downside protection,' said added, 'Ultimately, a balanced approach aligned with your risk profile and time horizon works best. Speak with a financial advisor to tailor your SIP strategy accordingly.'advertisementConversely, if you want safety and already have other high-risk investments, gold might work well as a D Naik, 'While equity mutual funds are known to offer a better long-term return potential over the long run, gold helps in hedging against inflation and can potentially outperform all other asset classes during times of global uncertainty.'He added, 'For gold exposure, gold ETFs or gold mutual funds may be a better choice for investment compared to physical gold due to their cost efficiency, convenience and liquidity. A 10-15% exposure to gold is typically considered to be ideal for most investors. Given the current equity valuations and the run-up in gold prices, it may be advisable to take such exposure systematically via SIPs, to reduce the impact of any short-term volatility.'However, the best choice depends on your goals and how much risk you're comfortable with. Bhagat believes a well-balanced plan based on your risk appetite and time frame works best, and a financial advisor can help you build the right Reel
Mint
23-04-2025
- Business
- Mint
THESE 4 mutual fund categories are the right fit when markets wobble. Check list here
When benchmark indices—the Nifty50 and the Sensex—have started to spike after being on a long downward spiral, retail investors are thinking hard about the fund categories they should invest in. The Nifty 50 index recorded a 1,850-point rally in the last six straight sessions while the BSE Sensex touched an intraday high of 79,824, logging a 6,000-point rise in six successive sessions. Read this Livemint article for further details. So, where should investors invest now, and which categories promise high returns in the near future? These are some of the categories of mutual funds wherein wealth advisors recommend investing: I. Balanced advantage fund: These are the funds wherein investment in equity or debt is managed dynamically (0 to 100 per cent in equity and equity-related instruments and 0 to 100 per cent in debt instruments). 'These schemes have the flexibility to move their portfolio between 0 per cent and 100 per cent equity and debt, allowing them to capitalise on changing market environments,' said Preeti Zende, founder of Apna Dhan Financial Services. 'Risk-averse investors with a long-term investment horizon could consider investing in balanced advantage funds for such core allocation, as these funds look to manage risks by dynamically managing equity allocation based on the market valuations. Moreover, such core portfolio allocation decisions should be agnostic to short-term movements in the market,' said Nilesh D Naik, Head of Investment Products, PhonePe Wealth. II. Multiasset fund: These refer to the funds which make investments in at least three asset classes with a minimum allocation of at least 10 per cent in each asset class. 'These funds aim to provide diversification, reduce risk, and potentially improve returns by a fund manager's tactical asset allocation based on market conditions,' adds Zende. III. Aggressive hybrid fund: These refer to schemes that invest 65 per cent to 80 per cent in equity and equity-related instruments and 20 to 35 per cent in debt instruments. 'Investors who can bear the volatility to some extent but also want some kind of downside protection can invest in aggressive hybrid funds that invest in both stocks (equities) and fixed-income securities (debt) with a higher allocation to equities, typically 65-80 per cent, and a smaller allocation to debt, 20-35 per cent,' says Zende. IV. Other categories: During volatility, wealth advisors recommend that investors explore investing in large and flexi cap mutual funds as well. 'Funds from categories such as flexi cap, large cap, large & mid-cap and value are ideal for inclusion in the core portfolio,' advises Nilesh D Naik of Meanwhile, some believe that it is insignificant which fund you opt for; what is important is the ability to stick to a plan that can help you ride through the storm. Harsh Gahlaut, Co-founder and CEO of FinEdge, for instance, argues that instead of reacting to volatility by chasing the right category, investors should anchor their choices to their long-term goals. 'One-size-fits-all investing doesn't work. What does is personalisation, conviction, and behavioural alignment. The real differentiator isn't the fund you choose during a volatile phase — it's your ability to stick to a plan built around your goals. If market swings are unsettling you, it's likely a signal to revisit your 'why' — not your portfolio,' he explains. Note: This story is for informational purposes only. Please speak to a SEBI-registered investment advisor before making any investment-related decision. Visit here for all personal finance updates. First Published: 23 Apr 2025, 10:43 AM IST
