Hello friends!
How are you all? Hope you all are good and enjoying your new year with lots of positivity. I'm also good and enjoying my life.
As I mentioned in my last blog I'm a mother of 2 year old son, soon his 2nd birthday is coming up. Like other parents we also concerned about his future investment. We keep bringing toys and other gifts for Children throughout the year. When it comes to big gifts, future investment idea seems best to me.
The question arises wheather investment should be made? Or which is the best option?
There are many options for investment like ;
Sip
Mutual funds
Stock market
Fixed deposits
Gold investment
Some government schemes
& Many more
We have to select one or more options among them. It is always beneficial to pursue more than one option because there is risk in all sectors. When there is no guarantee diversification is always a good option. Because we have limited resourse or money , we've to choose one Major option or any option after all reaserch and satisfaction.
Our elders always preferred gold investment. Now youth likes to invest in SIP and mutual funds.
youth also invest in gold but gradually their attraction is increasing towards other options.
I also believe in diversification , but when it comes to children's future investment , I trust more in gold.
How can we invest in gold?
Gold is a oldest investment product. In ancient time buying gold in physical form considered auspicious. Gold is bought for any auspicious occasion. In marriage and other occasions it is okay to buy gold in physical form.
But if you want to invest in gold for kid's future or any investment propose buying gold bond is a good option. If we buy gold in physical form we have to pay 10-12% making charges and 3% tax. Overall at the buying time gold become almost 15% expensive. If we buy gold in bond form we can save that extra 15%.
If we have gold in physical form there is always a risk of robbery but in the bond form it is more safe. Plus we get 2.5% interest for the gold bond which is also a good point.
Buying gold requires some planning and preparation. We can buy gold bond gradually.
Gold consider a safe investment option because there is always be a demand for it. If we compare with old times , how many times the gold price has increased.
Gold has inherent value. If we want to cash out in the crash market sip or mutual funds may be not give good return but gold give a good value even in the crash market.
So investing in gold is a good option to create wealth for kids future.
These are my opinions for kids future investment and gifting. If you want to invest in any area please research well before investing.
If you have any suggestion please let me know in the comment section.
In my upcoming blog I will also discuss about some government schemes for investment.
