Gold and SIP are considered a great investment option. But which of these two is the best? Know.
Gold Vs SIP: Today, there are many investment options available, but women often prefer to invest in systematic investment plans like gold or SIP. Both of these are very popular. However, many times there is a dilemma in the mind as to which would be the right investment option for the best returns. In such a situation, it is important to understand about them in detail so that your money grows wisely.
Actually, gold has always been the first choice of women. Generally women have been investing in gold for many years. Since gold prices keep rising, one can get good returns over time. It also feels safer, because it is handheld. It can be gifted, used when needed, or simply kept as it gradually increases in value. On the other hand, SIP is a smart way to grow money today. In this you invest a little bit every month, and over time this amount becomes bigger, because of compounding. But yes, there is some risk in it because it is linked to the stock market, but in the long run it can give you good returns. So, today in this article we will try to compare these two and find out where it would be best for women to invest-
Whenever we invest, we first pay attention to security and risk. Gold has always been considered a “safe investment” because its value never loses its value. However, its prices can go up and down in a short period of time. That means, if you sell the gold purchased today next month, it will not be necessary that you get the same price.
Whereas, if you invest in mutual funds through SIP. Where the risk is higher in equity SIP because the stock market goes up and down daily. However, it gives more profits in the long run. Whereas debt SIP is a bit safe, but its growth is slow.
Thus, if you want a safe investment then invest in gold. Patience is necessary in SIP.
While investing, we all definitely think about profits. Gold usually gives returns of 8-10 percent every year. It can also increase rapidly during times of economic uncertainty. It is safe in the long run, but it will not make you rich instantly.
At the same time, equity SIP can give returns of 12-15 percent or more if maintained for a long time. Debt SIP gives around 6-8 percent returns.
You can understand it like this also. Gold is like keeping savings under the pillow, because it will grow slowly. At the same time, SIP is like sowing seeds in a garden. It requires some time and care, but eventually becomes a big tree.
Anything can happen anytime in life. In such a situation, it is important to focus on liquidity while investing, so that it is easy to withdraw money when needed.
If your gold is in the form of jewelery or coins, it may take time to sell. But digital gold or gold ETFs can be sold almost instantly.
At the same time, you can take out SIP anytime, but it is beneficial to stay in equity SIP for 5-7 years because compounding gives bigger returns.
If you may need money suddenly, then digital gold or easily withdrawable SIPs would be a better option.
Even if we talk about convenience and accessibility, there is a difference between Gold and SIP.
Buying gold is easy, but keeping it safe is difficult. Keeping coins or bars also requires security. Often the fear of their being stolen remains in the mind. At the same time, digital gold is very easy, you can start it with just ₹ 100.
SIP is a completely online process. You can start with just ₹500 per month, investments will be made automatically every month. This way you don’t have to worry about storing them separately.
Whenever you invest, definitely see what your future goals are. On the basis of that you will be able to take the right decision. For example-
If your goals are small or you want to invest according to festivals, gifts, emergency fund etc. then gold can be the best option for you.
At the same time, if you are looking for investment options for long-term goals like retirement, buying a house, children’s education or financial independence, then you should invest in SIP.
Before investing, you should also understand the rules of taxation. Due to lack of correct information about it, investment often goes wrong.
If you have kept gold for more than 3 years, then the profit is taxed at 20 percent (with indexation). On selling before 3 years, tax is levied according to your income.
At the same time, equity SIPs are better from tax point of view. There is 15 percent tax on selling before 1 year, only 10 percent tax on selling after 1 year. However, the tax is slightly higher in debt SIP.
Now the question arises where women should invest. This will completely depend on your goals. For example, gold can be invested for protection from inflation, emergency fund, gift etc. At the same time, choose SIP option for wealth creation, long term freedom and better returns.
Try to keep a balanced mix of both for investment. You can decide to invest 20-30 percent in gold and 70-80 percent in SIP. This will provide you security and also increase in wealth.
