Gold can be considered a good investment option. Gold can give you good returns if you have invested at a right time. But in the past Gold has disappointed investors several times.
You can invest in gold by buying gold physically, through ETF, Mutual Funds, etc. Every option has its benefits and disadvantages.
If you are investing in gold for a short period, I would suggest you go for Mutual Funds. In that way, you will save on brokerage. Some Funds also offer a NIL exit load, if you hold funds for 1 month.
We can understand, why gold should be in our investment portfolio from the following points :
1. Inflation :
Gold can be used as a tool to use as a hedge against inflation.
2. Diversification :
Gold can be used to diversify investment portfolios.
3. Good returns :
In the past Gold has disappointed investors several times. But it has given good returns many times.
4. Highly Liquid :
Gold is highly liquid. You can encash it any time.
5. Good returns during market crash :
It is usually seen during a market crash, gold performs well.
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