In today's Diwali special episode of Invest Smart, financial expert Pankaj Mathpal sheds light on the auspicious tradition of buying gold during the festival, especially during Dhanteras, and its significance in enhancing your investment portfolio. Pankaj provides his valuable insights on incorporating gold into your financial planning.
Diwali, the festival of lights and prosperity, is the perfect time to illuminate your investment portfolio by considering the benefits of gold allocation. Pankaj emphasizes the importance of diversification and highlights gold's low correlation with equity, making it an ideal choice for stable returns. While various asset classes have their significance, gold stands out for its unique role in providing stability.
When it comes to investing in gold, Pankaj advises against physical gold, emphasizing the convenience and benefits of financial forms such as Gold ETFs, Gold Mutual Funds, and Sovereign Gold Bonds. He suggests allocating 10 to 15% of your portfolio to gold, ensuring a balanced approach to wealth creation.
Pankaj further explains the advantages of Sovereign Gold Bonds, including exemption from long-term capital gains tax on redemption and an additional 2.50% interest annually. These benefits make Sovereign Gold Bonds a compelling choice for long-term investors.
In the realm of gold investments, Pankaj provides valuable advice based on individual preferences. For regular investors, Gold Mutual Funds offer a systematic investment plan (SIP) route. If you prefer trading flexibility, Gold ETFs are a suitable option. For those with a long-term investment horizon seeking tax benefits, Sovereign Gold Bonds emerge as the top choice.
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