When we invest in gold at lower rates, can we sell the investments when the rates of gold get higher? I also want to know from where to get information about a company whose shares I want to buy.
-Satyendra
Investors have the option of buying gold in many forms: jewellery, coins or bars. It is possible that you buy gold as an investment as well though Gold ETFs. When the price of gold rises, the value of your investments in such funds also rises. There are almost 20 such gold ETFs that you can choose from to invest in.
Coming to your second question, you can invest in a company’s shares only through a broker. You will have to open a demat account with a stock broker. But you will have to invest time and effort to decide which share to buy when and why; you shouldn’t depend only on the broker’s suggestions to invest in them. On the other hand, if you're looking to benefit from equity with investments in small amounts, you can opt to invest in a well-performing mutual fund. Every mutual fund is run by a professional fund manager who takes all investment decisions on your behalf. But to learn about the companies that you want to invest in, you can either look them up on the websites of our stock exchanges or on that company’s own website. On the whole, we would suggest that if you're not well-equipped to understand the balance sheets of different businesses, you shouldn’t invest directly in shares and should opt for equity mutual funds instead.
This article was originally published on March 06, 2012.
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