Akshaya Tritiya 2024: Investing in gold has long been a tradition for investors seeking stability and security in their portfolios. However, there are alternative avenues that offer similar benefits with unique advantages. Diversifying investment portfolios with these alternative instruments alongside or instead of gold can enhance risk-adjusted returns and align with specific investment objectives and preferences.
Apart from gold, consider the below alternative investment options this Akshaya Tritiya 2024:
1)Government Bonds
Government bonds, particularly those issued by stable economies, offer a safe haven for investors seeking fixed-income securities. “Treasury bonds, for instance, provide guaranteed returns and serve as a hedge against inflation and market volatility,” said Dr Ravi Singh, SVP – Retail Research, Religare Broking Ltd.
2)Stock market
Akshaya Tritiya is also considered an auspicious time for investing in the stock market. Many believe that investments made on this day bring good luck and prosperity. It’s seen as an auspicious time to start new ventures, including stock investments.
3)Index Funds
Index funds are a type of mutual fund or exchange-traded fund (ETF) that tracks a specific market index. These funds aim to replicate the index performance they track by holding the same stocks or securities in similar proportions.
“Index funds with very low management fees can offer diversification because they simply track a specific market index. Through the time index funds have been around, they have delivered good returns,” said Ashish Aggarwal, Director, Acube Ventures
4)Commodities
“Gold is a globally recognised commodity, but diversifying into other assets like oil or agricultural products may provide additional benefits. However, the potential for fluctuations makes it essential for us to conduct thorough research,” said Ashish Aggarwal, Director of Acube Ventures.
5) Real estate
LC Mittal, Director of Motia Group, suggests that gold may not be the best choice for those seeking growth opportunities, but real estate could be enticing. Real estate offers several advantages over gold, starting with its tangibility, providing regular rental income and undergoing appreciation. It also serves as a hedge against inflation, as property prices tend to rise with inflation, and rents can be adjusted accordingly. Additionally, real estate diversifies portfolios, providing independence from stock and treasury bond movements. Real estate can be a solid investment option with a strong long-term record of appreciation, driven by factors like population growth and limited land availability. However, proper selection is crucial, considering location, property type, and market trends. Seeking guidance from a professional adviser can help investors navigate various investing strategies and methods effectively.
Disclaimer: The views and recommendations made above are those of individual analysts and not of Mint. We advise investors to check with certified experts before taking any investment decisions.
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Published: 10 May 2024, 06:17 AM IST
