Every Indian entrepreneur has, at least once, faced the question ‘Are you sure about this?’ from a concerned elderly family member. Trading cushy salaried jobs to follow the entrepreneurial dream is indeed a risk that, while worth taking, comes with more challenges than the regular nine-to-five stint. And at the fulcrum of most of these challenges is money.
From breaking fixed deposits to scurrying around for procuring business loans, or hesitantly borrowing from friends and family, entrepreneurs face tough times financially, not just at the start, but also well into the next couple of years. As most start-ups take years to find their footing and start making profits, they may find themselves constantly financially challenged. Add to that the delay in concrete future planning due to the gap years of low or no funds inflow. These factors may cumulatively affect the overall financial standing, which is why it’s even more important for entrepreneurs to have a well-crafted long-term investment plan, both for the business and themselves.
Entrepreneurs need to have a diversified portfolio with the right mix of high-risk-high-ROI and safer instruments. But should entrepreneurs be investing in high-risk options when they are already plagued with money woes? Since we’re considering it from a long-term perspective, stocks are a noteworthy fit here as they can be played around with during periods of favorable changes over an extended duration. And also while they may be tempted to avoid all risks, a little calculated risk can yield higher returns to tackle short-term exigencies.
However, given how unprecedented situations, such as the current global pandemic has changed the face of businesses, prompting various start-ups and even established companies to either halt operations or completely shut shop, it is important to have a sound investment strategy. And the yellow metal – gold – has stood the test of time, living up to its identity of a safer and resilient investment choice. In fact, gold acts more as a hedge than an instrument. While stock investments give you equivalent ownership of the company and bonds elicit a payable interest, gold, on the other hand, safeguards against economic inconstancy.
For instance, during last year’s peak pandemic period, while the volatility of the stock market had every investor on their toes, the value of gold jumped from Rs. 39,100 to Rs, 52,300 between January and October 2020. This establishes that gold finds preference in every entrepreneur’s investment portfolio.
As the median age of investors changes, so does their mode of investment. Traditional investment avenues are soon becoming obsolete, thanks to digital natives who want everything at the click of a button. Besides convenience, owning physical gold comes with security and safety risks and added expenses. The owner has to either find trustworthy gold vaults that come at a charge or live in constant fear of the safety of stored gold at home. Digital gold does away with these concerns and also omits the commission charges associated with physical gold bought from dealers.
The authenticity and purity of physical gold are also questionable, whereas, digital gold from MMTC-PAMP carries a 99.999% purity grade, thereby yielding the highest return value. Digital gold is also easier to transact in or liquidate, which translates into instant funds in times of contingencies- something start-ups need to unquestionably account for.
A smart investor must be cautious yet open to change, and the investment portfolio should mimic this attitude. A diversified portfolio with constant fidelity to gold as some percentage of the total could lead to a fantastic long-term payoff that enables solidifying and expanding from the business standpoint, and creating financial stability, from the entrepreneur’s standpoint.
The idea that India's proportion of gold in its foreign exchange reserves has been on the rise recently is something traders, economists and also ordinary people are now aware. But why is the Reserve Bank of India (RBI) betting big on gold, and more importantly, what does it mean for people like you and me? Let's break it down in simple terms.
Onam is more than just a festival in Kerala. It is a celebration of the joy of abundance, from beautiful homes adorned to the heavenly Onasadya feast, colourful Pookalam (flower rangoli), and local boat races. With so many traditions, one tradition that does not change is gold. Gold holds a special place in Indian festivals, and Onam is no exception.
Janmashtami marks the birth of Lord Krishna, it's a celebration of love, devotion, and happiness. Throughout India, families excitedly prepare to welcome their little divine child, affectionately called Laddoo Gopal. Homes are decorated with flowers, temples are lit up, and "Hare Krishna" is sung far and wide. You can celebrate as large or small as you want, but Janmashtami is the right time can connect with your roots and share blessings in meaningful ways.
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