Invest in Gold

A part of the portfolio must consist of investment in Gold. Say 5% of portfolio. Gold for centuries has been a financial security. In time of deep distress gold comes to the rescue. It has never lost its value. Investing in gold can serve as a hedge against inflation and economic uncertainty. Gold is a safe investment.

Gold has given a CAGR of 11.2 % in last 20 years from beginning from Apr-2004 to Apr-2024. On 01-Apr-2004, Gold was $442 an ounce and today it is $2338 an ounce. Below is a chart showing the price rise.

Gold can be bought in different ways

Physical Gold: Gold coins, gold bars, Gold Jewellery. Don't shy away from buying jewellery for your wife. consider it as an investment. Though in jewellery there are making costs involved but the rise in gold price will make up for the same.

Gold Exchange-Traded Funds (ETFs): Like you buy stocks. you can buy gold as ETFs on the stock market. the price of the ETF matches those to the international gold price

Sovereign Gold Bonds: From time to time. the Indian Govt. comes up with sovereign gold bonds. These are held in your demat account and the price matches that to the international gold price. The added benefit is a 2.5% p.a. interest the govt. gives on these bonds which acts as a small income.