When we are in the midst of the festive season and everything is in shambles, I will start this piece with a very pleasant statistic. According to data from CMIE’s Consumer Pyramid Household Survey, only 5.4% of urban Indian women are employed as of February 2021.

If you’re reading this, chances are you make your own money and are part of that little bit. But I will not rush to praise you for it. This is because, due to the predominantly patriarchal nature of India, most working women still keep a distance from matters of money like budget and budget. Investment And finally give their salary to the men of the house to manage.

And so before I can praise you on how far you have come in a society where women are not encouraged to pursue careers, I urge you to think and assess. Is it enough for a woman to work and earn? Or does true financial freedom mean much more than that? To be able to make your own financial decisions and take control of your hard earned money?

How hard can it really be? You are educated, you are excellent at your job, and you are able to make your own choices. Specially; With a plethora of information available to you on the web and easy access to digital banking and financial services.

don’t be intimidated by the crowd of Investment way out there. Let’s start small. Together Diwali And its Sleep There is a buying tradition here, and given that Indian women are known for their preference for gold as both a wearable and a savings instrument, let’s take a closer look at the justification for investing in this auspicious asset class and the best way to invest in it. Start by educating yourself about

While equities generate growth and debt brings in regular income, gold, due to its low correlation with the other two, typically moves in an opposite direction, providing diversification and improving a portfolio’s risk-adjusted returns. . We saw this play as recently as March last year when the stock markets fell and gold climbed to new highs, mitigating the impact of the market crash on the investment portfolios of gold-holders.

At the peak of the pandemic last year, savings in gold proved to be a ready source of liquidity for many people looking for funding for medical or income shocks. Gold’s liquidity doesn’t dry up even during times of financial stress, making it a handy and far less volatile asset in today’s unpredictable world.

While the hyper-adjustable monetary and fiscal stimulus measures of the COVID era have helped revive consumer demand, they have also led to high inflation. Check petrol price today. It has crossed Rs 100 per liter! Gold prices have historically kept pace with inflation, which can help investors deal with the impact of price hikes on their finances.

Different avenues to pursue for investing in gold.

When investing in gold, investors should not underestimate the importance of the instrument used to take the risk, as it can make all the difference. First things first, buying gold jewelery is not the same as investing in gold. This is because physical gold often spoils with inaccuracies and price inefficiencies through markups, making charges, etc., which eat into your returns.

Thus investing in gold is best done through financial forms. Digital gold, sovereign gold bonds and gold ETFs are financial ways to invest in gold. The White Digital Gold offering meets the purity and liquidity norms; They fall short on regulation and price efficiency due to high bid-ask spreads. Sovereign gold bonds pay annual interest and are tax-efficient, but they suffer from low secondary market liquidity resulting in price inefficiencies. Gold ETFs are backed by physical gold of 24 karat and allow investors to invest in lower denomination gold without worrying about the purity or storage of the gold. These regulated instruments are traded on the exchange at the current market price of physical gold without any making charges or premiums. Mutual fund investors can invest in Gold ETFs through Gold Savings Fund.

There is no doubt that the tradition of buying gold on Diwali is a great investment and financial practice, this Diwali can also be an opportunity to adapt that tradition. Learn to differentiate between gold jewelery purchased for use and investment in gold. Choose efficient, financial avenues to invest and start playing a bigger, more informed role in financial decision making.

Remember, dear reader, if you can make your own money, you can certainly manage it too. happy Diwali!

(The author is Associate Fund Manager – Alternative Investments, Quantum Mutual Fund.)