Here’s how to add glitter to the investment portfolio

New Delhi: As the auspicious occasion of Akshay Tritiya falls on Friday, May 14th, we introduce you to the meaning of the day and how to invest in gold during the holiday.

What is Akshaya Tritiya?

Akshaya Tritiya is an annual spring festival celebrated across India as the day is considered auspicious and marks the harbinger of good luck in the Hindu calendar. Also Read: 7th Wage Commission: Government Extends Invoice Submission Deadline To Claim 2020 LTC Voucher Program

The word Akshaya is defined as “never diminishing” because the day is associated with wealth, prosperity and happiness and it falls on the third day of the brightest half of the moon in the month of Vaisakha, according to the lunar calendar. .

The day is also known as Akha Teej, and followers believe the occasion is best suited for holding rituals, rites, and prayers. This day is marked by a tradition of purchasing valuable items such as gold and silver. It is believed that buying a gold bar or gold jewelry brings good luck and prosperity

What are the options for investing in gold?

According to financial planners, between 5 and 15% should be allocated to gold in the investment portfolio as it acts as a hedge against currency volatility and inflation.
It is expected that more people will opt for digital gold options such as gold funds, electronic gold and gold ETF which may impact the sale of physical gold in the world. detail.

While some retail jewelry brands also expect to reap mooAkshaya Tritiya 2021 compared to last year. According to the Indian Bullion and Jewelers Association, the price of gold is Rs 47,764 per 10g, excluding taxes.

Physical gold: Several jewelers have started offering a video conferencing service where you can make an appointment and choose to purchase items in real time. You will get the payment link after which the gold will be delivered to your address.

Gold bonds: You can also choose to buy the yellow metal through Gold Sovereign Bonds (SGBs). You can buy gold in denominations of 1 gram of gold and multiples of it. These bonds also offer an annual interest rate of 2.5% on the amount of the initial investment. The new tranche of SGB will only open for subscription on May 17 and close on May 21. Bonds mature after eight years and early redemption is permitted after five years. The only problem is that these are not available – the government is issuing SGBs in installments.

Digital Gold: To attract customers for physical gold, several investment apps and wallets offer digital gold. You can buy gold for as little as Rs1 at any time of the day, but remember that it will attract 3% Goods and Services Tax (GST) like you do when you buy gold. physical gold. You can request delivery of physical gold after you have accumulated at least 1g of precious metal. Alternatively, you can also choose to sell it on the wallet or investment apps.

Exchange traded funds: Gold ETFs are basically paper gold and the money you invest will be pegged to 24k gold. Here the underlying asset is gold and some cash. To invest in these ETFs, you need to open a Demat account. When you trade, you get the monetary equivalent of the price of gold on the day of redemption. ETFs have two costs: the expense ratio and the cost of opening a mat account.

You can also invest in gold through gold savings funds which are similar to gold ETFs. But they don’t trade on the stock exchange. Remember to choose the above instruments based on whether you want to invest or accumulate gold for the future and how much you are comfortable spending.

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