Which is a Smarter Investment, a Gold ETF or Fixed Deposit?

Gold ETF India

Gold ETF India vs Fixed Deposits

The debate has raged again. This is understandable because both the assets are quite competitive and it can be very difficult and confusing for the common man to understand which one to choose in order to have a better rate of return. The truth is that both parties have their advantages and disadvantages. If you are still confused about which one to invest in, this article will shed some light on the pros and cons of both kind of investments.

Investments should never be seen from only a rate of return’s perspective but also from a fit perspective. You should never invest in anything if that does not fit your requirements or needs. One could gain from fixed deposit interest rates and at the same time also get returns from investing in gold ETF India. In order to understand which one to invest in, it is important for you to get down to the nitty gritties and understand the benefits of both the investments and then compare to see what works best for you.

Features and Advantages of Investing in Gold ETF India:

There are several benefits of investing in Gold ETF India. Gold has been one of the most traditional kind of investments made by Indian people, especially the middle class. The gold rate today reflects for itself that if you would be holding gold in your hand, it would be surely worth a lot of money. Let us take a look at the advantages of investing in Gold ETF India.

  • This kind of investment takes place electronically. That would mean purchasing a certain quantity of gold online and then selling it when you feel it is convenient.
  • Investing in Gold ETF India is quite a flexible option. You will have absolute freedom to choose any amount of money that you would like to invest in your venture for gold. In some case you could even choose the tenure.
  • Gold rates barely fall. It is important for an asset to show stability and nobody does it better than Gold. Gold rates in India are a testament to that fact. Because the rates are stable you have more financial security
  • Having said the previous point, it might also be important to mention that the gold markets are directly under the control of very volatile market forces such as demand and supply.
  • The demand for gold has been higher than ever. It has been noticed that the demand for gold has significantly risen over the years and shows no signs of stopping

Features and Advantages of Investing in Fixed Deposits:

Fixed deposits continue to be a very popular and well trusted method of investment for millions of people in India. Let’s take a look at what investment in Fixed Deposits have to offer:

  • Fixed deposits might have you investing a large sum or a significant amount of money to begin with.
  • A fixed deposit is not always very flexible and it is at the discretion of the bank’s stringent policies.
  • If you decide to invest in Fixed Deposits, you will have several options to choose from. There are various sub categories such as the recurring fixed deposits, non-cumulative fixed deposits, and non-recurring fixed deposits.
  • For those investors who do not like paying taxes very much, they always have the option to invest in tax saving fixed deposit plans that today are offered by several banks across the country.
  • A fixed deposit is considered to be much more liquid than any other kind of investment. However, it is important to mention here that the above statement absolutely depends on the kind of financial institution you have chosen to open your fixed deposit with and the kind of terms and conditions that the institution is imposing on you.
  • A fixed deposit is barely risky. This is very alluring to a lot of middle class people who cannot afford to lose their precious money.
  • In some cases, you might be allowed to choose your own tenure for the fixed deposit plan that you would avail. This is mostly in cases where the individual choosing to open a fixed deposit account is a senior citizen of the country. In such a scenario, he or she would enjoy special benefits.
  • Lastly, fixed deposits are trustworthy and can be well banked upon if you are looking for a steady paycheck without too much risk.

You may like to Read: Future of Gold Investment

The battle will go on between gold and fixed deposits. It is hard to declare a winner as it completely depends on your requirements and your ambitions. Should you choose to go ahead with investments, you must take necessary precautions and also consider hiring a finance professional if deemed necessary. The right kind of investment can certainly provide you and your family with a safe and secure financial future which you do well deserve.


Leave a Reply

Your email address will not be published. Required fields are marked *