FD interest in banks is declining rapidly. At the same time, the rate of gold has increased greatly. In such a situation, whether gold can be used instead of bank FD. Although not technically possible, but if you are smart in financial matters, it can be relaxed. Just like you invest in FD, you can do so comfortably by investing in gold. But you will have to invest in gold online rather than in physical form. It has two advantages, one is the jeweller’s charge, while it is easy to buy and sell.
First, know how much gold Gold earned in FDs. If you see the returns between January 2000 and October 2020, then it is much higher than FDs. Gold has given around 589 per cent returns during this period. If it is seen on an annual basis then it is 9.73 per cent annually. Know that if the 15-year annual return of gold is seen from January 2005 to October 2020, then the total return of this has been around 355%. The same annual return has been around 10.09 percent. Know that if the 5-year annual return of gold is seen from January 2015 to October 2020, then it has given a total return of about 64.22%. On the other hand, if the annual returns are seen, then Gold has given a return of about 8.97 percent. Know that the returns of gold from January 1 till now, if the total return of gold is seen between January 1, 2020 and October 7, 2020, then it has been around 27.90%. On the other hand, if it is seen on an annual basis then it becomes around 37.66 percent.
Learn how to use gold as FD, usually people use FD or invest every month as RD. Investing or depositing money is done by these two methods, most people, yes how much is being invested depends on everyone’s ability. In the same way, people can also stay in gold. As far as gold ETFs and gold mutual funds are concerned, the investment here can usually be in the form of one gram or half gram unit. But Paytm and some other wallets also allow investment in gold from Rs 1. In such a situation, people can invest in gold according to their capacity. Just like money is deposited in FD and RD for at least 1 to 5 years, similarly gold can also be made.
How to get money on need
Usually people withdraw money only after completion of FD or RD. Many times FD or RD of this money is refunded if not needed. On the other hand, if you have invested in gold, then there is no time line here. In such a situation, you can buy gold anytime and sell it anytime. In such a situation, if you have invested in gold today, after 1 year or so, you can sell it on need and take money. Apart from this, investment in gold can be maintained if not needed. Another advantage here is that you can take money by selling as much as you need in your gold investment. Whereas FD and RD do not have this facility. Here only investment has to be made.
- SBI Gold Fund gave 32.05% return in 1 year
- Invesco India Gold Funds gave 31.52% return in 1 year
- HDFC Gold Fund gave 31.22% return in 1 year
- Nippon India Gold Saving Fund gives 30.85% return in 1 year
- ICICI Pru Regular Gold Funds return 30.39% in 1 year
- Note: This return has been calculated according to the NAV of 11 October 2020. One year’s return means investing in gold on the same day last year in October.
Gold: know where to sell on need, get high price
The last few months have been difficult for people financially. Especially for those living in urban areas and losing jobs. In such a situation, for those who buy gold, selling and selling gold may be the last option. Selling gold at such a time is good for those who do not have much attachment to gold. Gold prices have risen considerably in the last few years. Therefore, it is right to earn profit by selling gold during such trouble, because the profit will be higher at the increased prices. But where to sell physical gold is an important question. Explain that the best place to sell gold are companies that specialise in buying gold for cash. Let’s know the details of such companies.
Tax on gold
Remember when you sell gold you have to pay a tax. In this case short-term or long-term capital gains tax is applicable. If short term capital gains tax is applicable then the amount will be added to your total income and you will have to pay tax according to your tax slab. If the long-term capital gains tax is applicable, it will attract 20.8 percent tax without indexation. But keeping in mind the indexation number will be applicable, which means that your net tax may be reduced.
Keep this in mind
Before selling your gold, it is important to inquire and get the correct rate information. If you are selling large quantities of gold then it is very possible that you may suffer a loss. So make sure you get the correct and highest rates.
Founder & CEO| Fox Investor & A.V.A. Taxway Associates- Corporate & Tax Law Firm
Viibhor Agarwal is a Business & Brand Consultant as well as he is a Financial Expert his area of specialization is to guide Entrepreneur, Start-up’s and SME’s to build the brand value of business financially & legally. He has 8 year extensive experience in this sector