It is the season of investment. We’re all in the mood of IT return filing and the in the mood to invest a little more this year. You invest in mutual funds, property, stocks, all types of financial instruments, but it’s high time you give gold its due importance in your portfolio. If you really want to buy gold, it depends upon certain things.
Your current income – No matter how much you want to invest, always consider how much you can afford after all your year-long expenses. Never go beyond your affordable limit according to your income.
Your purpose – Keep your purpose clear. If your purpose is marriage, jewellery is your ultimate goal. If your purpose is higher income over the long term, SIP and bullion is the way to go.
Other financial plans – Take into consideration your whole portfolio before jumping into decisions. Keep 10-15% of it in gold, and decide accordingly.
Your risk appetite – If you’re someone who has a high appetite for risk, you can plan something that gives a little more emphasis on returns than that of safety of investment. But it is advisable to always keep in mind your need for liquidity before getting your money stuck anywhere.
Long-term plans – Don’t forget to include your long-term plans in your current plan of investment. Keep aside a part of your savings for these plans, and invest the rest.
The kind of returns you’re looking at – If you want higher returns, plan something that is a smart blend of all investments. It is very important to balance your portfolio to fight stock market variations.
Go on, invest, but always listen to your conscious and subconscious mind, and make a well-informed decision, because the best returns always come from a well-researched investment.
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Related: Why One should Invest in Gold?