I am investing in Reliance Gold Fund through a monthly SIP of ₹1,000 since the last four years. My investment is in negative. I want to know that what would be the return in the long term If I continue my investment in the same fund?
- Manoj
It will not be possible to predict the long-term returns from your investment, as it would depend on the demand and supply of gold over a long period.
We don't advocate investing in gold. Gold is very different from other investments. For example, bonds pay you an interest. Stocks offer you a part ownership of of the company. The value of gold, on the other, is determined by its demand and supply.
Some investors invest in gold as part of the diversification of their portfolio. However, we don't believe that diversification is about buying every available investment for the sake of diversification. It is more about optimising your portfolio to achieve your financial goals with some amount of stability.
This article was originally published on November 24, 2015.
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