A FIGHT BETWEEN BITCOIN, EQUITY, GOLD, REAL ESTATE
Nowadays due to unprecedented times, most of us want to make wealth from our savings for a sense of financial security in life but there is a constant fight in the minds of a confused investor between Bitcoin, Equity, Gold, Real estate, where to invest, how to diversify the portfolio. Before we delve into the mentioned weighty terms of investment portfolios. Let us get some essentials of these instruments beforehand only.
BITCOIN:- We're pretty sure that you must have read about this on the front page of the newspaper many times as it is one among the digital currencies which has seen a major boom recently. It is a kind of cryptocurrency created in 2009, which acts as an encrypted and decentralized medium of exchange, based on the blockchain technology. Other than bitcoin there are many other famous crypto like Polkadot, Ethereum, Ripple, Litecoin etc. are also available in the stock market.
EQUITY:- Equity is a very broad term in the fields of finance and accounting. But for understanding it in context of stock market, we can say that it is the amount invested in a specific company which provides partial ownership to the individual in that company. Any individual can invest in equity by purchasing equity shares of that company.
GOLD:- Gold investment is one of the oldest methods of investing in the global world. Now, there are so many options for gold investment available in the market. Mutual Funds and Exchange-traded Funds (ETFs) in Gold, Gold mining companies, Gold coins and jewelleries, Gold Future Options can be possible good options for investment.
REAL ESTATE:- Real estate is a kind of property which includes land, flat, building, any residential, industrial or commercial area. It is a kind of immovable but transferable investment. Investors spend on real estate for generating further income rather than using it for personal purposes.
Now, as we have pretty much idea of these four. So let's discuss which will be the most favorable one for you on the basis of you primary goal.
Term of investment:- If your primary purpose is to invest for short-term needs, then regular trading in Bitcoins and Equity Shares would be a better option for you. And if your goal is for long-tem wealth accumulation, then you can invest in all the four options. But as per Gallup Survey for long term investment, Real estate is mostly preferred for long term by people.
Inflation:- If your primary motive is to survive in persistently increasing inflation, then gold can be considered as the most protected form of investment as gold is not under direct control of government and if imprudent government policies leads to inflation it wouldn't be affecting your portfolios as such. You should also know that world's number one investor Mr. Warren Buffett does not invest in gold, for him investing in gold is non-productive, rather he invests in the shares of gold miners.
Risk:- If you are a risk averter, then you should prefer Real Estate and Gold as these two portfolios have low levels of risks. And on the other side, if you are a risk tolerator, then you can go for Bitcoins and Equity with higher returns along with a high level of risk as well. Investment in Bitcoins and Shares can become a kind of high roller-coaster ride for you.
In the end, we suggest you diversify your portfolios in different options rather than investing your entire finance in one single option.
“Happy Investing!!”
-Nisha Upadhyay
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