Money Goals
Gold, Stocks or Crypto? Here’s how I broke it down
Understand Gold vs Stocks vs Crypto to make informed choices.
Key insights
Investing in Gold vs Stocks vs Crypto requires a good understanding of each asset.
Investing in Gold vs Stocks vs Crypto - Align your risk tolerance and investment goal.
Streamlined approach simplifies investing in Gold vs Stocks vs Crypto.
The investment universe is massive, but making the right choices is easy. How? Understanding your goals, time horizon, and risk appetite makes it easier to identify the investment avenues that align with your overall financial plan. Additionally, knowledge of applicable tax implications helps make well-informed and confident decisions.
Let’s try to simplify some of your choices by exploring the popular three investment avenues, i.e. Gold, Stocks, and Crypto.
A Gold vs Stocks vs Crypto comparison will empower you with insights to make smart investment choices.
Gold vs Stocks vs Crypto: The different asset classes
Let’s begin by exploring each asset class individually before understanding investing in Gold vs Stocks vs Crypto.
Gold
Gold is no longer purchased for cultural reasons but also for investment purposes. From physical Gold to Gold Mutual Funds to Digital Gold, there are several ways to invest in this metal. Notably, this asset class is considered one of the effective strategies to hedge your investment portfolio. It typically protects you during times of inflation, offering stability that traditional assets normally fail to provide.
Stocks
Stocks allow you to participate in the economic growth. You can either directly invest in Equity or invest through Mutual Funds. The stock market is inherently volatile and demands extensive research and knowledge.
Ideally, if you are new to Stocks, Mutual Funds are a good starting point. They are professionally managed and reduce the need for individual research and monitoring, allowing you to gradually learn about the market.
Crypto
Crypto or Cryptocurrency is not just used as a mode of payment but also for investments. Bitcoin, Altcoins, and Tokens are a few examples. Of these, Bitcoin is more popular. It functions on the blockchain technology and is characterised by high volatility. You can buy Bitcoin units from Cryptocurrency exchanges.
Crypto is a risky investment as there are concerns around regulatory uncertainty, high price volatility, cybersecurity threats and limited investor protection.
Gold vs Stocks vs Crypto: The best choice
After an overview of investing in Gold vs Stocks vs Crypto, the next obvious question in your mind would be ‘Gold vs Stocks vs Crypto, what’s better?’
There’s no direct answer here. The decision to invest depends on several parameters like your risk tolerance, financial goals, time horizon, etc.
For instance, Crypto may not be an ideal choice if your risk tolerance is low. In such a case, you may want to explore Gold or certain Mutual Funds with comparatively less volatility.
Understanding Gold vs Stocks vs Crypto contributes to informed decision making
Before investing in Gold vs Stocks vs Crypto, make sure to understand the key traits of each asset class. This will help you identify the investment avenue that best matches your financial objectives and can accelerate your financial journey.
Ultimately, a diversified portfolio with a mix of different asset classes can help you manage your risk tolerance and return expectations, contributing to a robust investment portfolio.
Furthermore, it is always a good idea to test the waters by investing in smaller quantities to understand the functioning of various asset classes before putting in larger amounts.
Disclaimer: This article is intended solely for informational purposes. The views expressed in this article are personal. Axis Bank and/or the author shall not be liable for any direct or indirect loss or liability incurred by the reader arising from reliance on the content herein. Readers are advised to consult a qualified financial advisor before making any financial decisions. Axis Bank does not endorse or guarantee the accuracy of any third-party content or links included in this article.
Mutual Fund investments are subject to market risk. Please read all scheme-related documents carefully. Axis Bank Ltd. is acting as an AMFI registered MF Distributor (ARN code: ARN-0019). Any purchase of Mutual Funds by Axis Bank’s customer(s) is purely voluntary and not linked to availment of any other facility from the Bank. This content is for informational purposes only and does not constitute investment advice. Past performance is not indicative of future returns. Readers are advised to consult a qualified financial advisor before making any investment decisions. Terms and Conditions apply.
By Axis Bank Learning Hub Team
