look news india
Investing in gold has been the first choice of Indian investors, but in today’s digital age, investing in ‘Gold ETF’ (Gold Exchange Traded Fund) instead of physical gold is considered more safe and beneficial. Is it right to invest in Gold ETF right now? Market experts and financial experts believe that amidst the ongoing fluctuations in gold prices, this can prove to be a great opportunity, provided you have the right understanding and strategy of investment.
Why is investing in Gold ETF a wise decision?
The biggest challenge in buying physical gold is its purity and the cost of keeping it safe, but Gold ETF is the solution to both these problems. It is completely digital and listed on the stock exchange, which you can buy or sell anytime as per your convenience. Experts say that when economic uncertainty increases globally, gold acts as a safe haven. In the current market conditions, adding gold to the portfolio reduces risk and offers the potential for better returns in the long run.
Adopt this special strategy for investment
According to experts, instead of investing lump sum money in Gold ETF, the best strategy is to adopt the method of ‘Systematic Investment Plan’ (SIP). With this you can take advantage of market volatility and reduce the average cost of purchase. Experts recommend keeping only 5 to 10 percent of your total investment portfolio in gold. This allocation will provide you with a safety net during market volatility. Also, keeping an eye on gold prices and increasing your investment little by little with every fall is a smart approach.
How to choose the right time
The right time to invest is when you invest in a disciplined manner with a long view. However, buying it is considered most beneficial when gold prices fall. Experts advise investors to keep an eye on the price of gold in the international market and the strength of the dollar, as these have a direct impact on the prices of gold ETFs. If you are looking for a long term goal (more than 3-5 years), then the present time can be a good entry point for investing.