InvestorQ : For the last 10 years, if I compare the growth of gold and mutual fund, which is better?
Roshni Hegde made post

For the last 10 years, if I compare the growth of gold and mutual fund, which is better?

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Sam Eswaran answered.
1 year ago

Are you looking to invest in physical gold? Well, I would advise you to rethink. I am an investor in the market for many years. My observation says, that the idea of investing physical gold is not an ideal plan. Gold prices can be highly volatile.

The fact that gold is one of the primitive kind of investing activity, I call it an excellent passive investment and protection in bad times. However, financial advisors do not consider gold as a productive asset. Money that you invest in physical gold it does not contribute to any kind of economic growth, whereas in shares or bonds or deposits it does. There is a quote saying, a pile of gold will stay like the same pile of gold no matter how much time passes.

If you have the availability of a modern financial system, with all its options of a large variety of asset classes, then you should explore them to choose better options for investments.
Mutual fund investments open its door for good returns unless you opt to keep it invested for a longer period. As Mutual Fund and Gold are both completely different things, returns in both vary a lot. Thus compare the returns and risks before you add them in your investment plan.

If you analyse the data of the last 15 years of India, In the 2003 year cost of gold was Rs 5,600 approx., while the BSE Sensex was at the level of 4231.69. Presently, the value of 10-gram gold is Rs 31,320 while the Sensex is at an all-time high of 38,000. Gold has appreciated 5.4 times since 2003, while the Sensex grew nearly 10 times. (Source
Also, unlike mutual funds, gold does not have any other tax benefits.
So build your investment plan wisely after knowing all its facts and figures.