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ome of the aspects investors will want to check while making an investment decision include low risk, high returns, liquidity, tax savings and others. Investing in PPF (expanded as Public <keyword id="45028" type="ORGANIZATION" weightage="20" keywordseo="Provident-Fund">Provident Fund</keyword>) and <keyword id="18712" type="ENTERTAINMENT" weightage="20" keywordseo="Gold">Gold</keyword> will meet these requirements. However, if you wish to choose between these options, here are the points you must consider. How to approach the topic <keyword id="8284047" type="UNKNOWN" weightage="20" keywordseo="gold-vs-ppf">gold vs ppf</keyword> In India, the investors have a wide range of investment options to choose from. The objectives of investment vary between different investors. Most common expectations that investors have while investing include high returns potential and minimum risk. The other two common expectations can be tax savings and diversification portfolio. There are a lot of options that will meet these criteria. However, PPF and gold are highly sought after investment options. Here we look at these options from different perspectives to be able to choose the right one that will help meet your investment objectives. Investment Risk in PPF PPF is a very popular savings scheme that has a strong backing by the government of India. The topmost benefit of a PPF account is that your investment will fetch you a fixed annual interest. Year on year, the central government fixes the interest rate for PPF. Asset Management Companies pool the investment from investors and invest it in different kinds of securities. Returns on <keyword id="490221" type="PERSON" weightage="20" keywordseo="investment-in-gold">investment in gold</keyword> is prone to fluctuations depending on market conditions. Potential of returns in PPF and Gold The annual interest rate of PPF investment is usually around 8%. Since the rate of interest is predetermined, the amount you will earn year on year is fixed and does not carry any risk. Gold assures a reasonable rate of interest most times. However, the present conditions in Indian market shows us that the returns can only be nominal due to gold inflation and devaluation of paper currency happening side by side. If you do not mind the long lock in period in case of PPF, PPF can be a better option. If you do not mind risks and will look for flexibility, then you might want to choose gold for investing. Investment tenure This is a significant point of comparison while choosing between gold and PPF for investing. The minimum investment duration with regard to PPF is 15 years. The first time you can withdraw from the PPF account is only after 5 years. After maturity, it is also possible to renew your PPF account in sets of 5 years. Due to the long investment tenure associated with PPF account, it will highly suit long term savings. If you invest in paper gold, there are quite a lot of investment tenures to choose from. You can always sell physical gold whenever you want, but this process will incur you a loss most times. Tax Savings PPF investment is not taxed until an upper limit of Rs 1.5 lakh in a year. Also, the returns that you get from PPF are exempted from tax. Gains from gold investment is taxed at the rate of 20 percent along with surcharge. If you buy physical gold, you will have to bear the GST charges of 3 percent in addition to the making charges. The other ways to invest in gold include SGBs, gold ETFs and gold mutual funds. The taxes on gains vary between these gold investment-categories.

comparison between Gold vs PPF: which Is better For Investment

Indians love <keyword id="18712" type="ENTERTAINMENT" weightage="20" keywordseo="Gold">gold</keyword>. But interestingly, <keyword id="6357979" type="ORGANIZATION" weightage="20" keywordseo="mutual-funds">mutual funds</keyword> too are fast gaining popularity as an investment option. According to a report by <keyword id="6355988" type="CITY" weightage="20" keywordseo="Assocham">ASSOCHAM</keyword>, while gold continues to be a safe bet, Indians are also returning to the stock market for higher returns following a buoyancy in the equity market in the recent times. 
	 
	“The middle class families are investing in gold as the reliable and stable bet while some of them are also returning to the riskier option of the stock market, enthused by a runaway rise in the equity market in the last one year, especially after formation of the new government at the centre,” said DS Rawat, general secretary of the industry body. 
	 
	The report revealed that considerable percentage of working women preferred investing in the stock market as well through mutual funds schemes like Systematic Investment Plans (SIP) for quicker returns. 
	 
	According to the study, about 72% of the respondents preferred gold as an investing option followed by shares and mutual fund schemes in this festive season followed by extra earnings from bonuses. On the other hand, 62% of corporate seconded the equity markets for investment because there is an easy availability of advisory consultants who they can rely on for guidance. 
	 
	"They are now focusing on investing in gold and stock markets rather than in traditional channels of investment like post offices, fixed deposit and PPF promoted by the government," added Rawat. 
	 
	Nevertheless, Indian investors still practiced investing a portion of their funds in the traditional options as these assured safe returns. 
	 
	Interestingly, analysts noted that while investment in gold may seem as a good option, it may lead to a riskier situation in the overall economy in the long run. “Gold imports rose by 450% in September which is actually worrying as this would add substantially to our import bills. Rising imports have caused concerns among the policy makers while the government is mulling import curbs again,” noted Rawat.

Indians Prefer Gold, Mutual Funds For Investments

<ul><li>If you plan for your financial goals, you can start investing even with small amounts this Diwali.</li><li>Here are five <keyword id="381673" type="General" weightage="20" keywordseo="investment-options" source="Orion">investment options</keyword> that may be suitable to all investors to start their financial planning.</li><li>Check out <a href="https://www.businessinsider.in/">Business Insider </a>for latest updates.</li></ul>Many of us receive bonuses from our workplaces and some money as gifts from our close relatives on Diwali, which is usually spent on things like buying crackers or sweets. Instead of spending a huge amount of money on such things, there are several investment opportunities you can tap into, this festive season. Here are five investment options that may be suitable to all investors to start their financial planning. <keyword id="35471" type="General" weightage="20" keywordseo="sip" source="Orion">SIP</keyword> Systematic investment plan (SIP) is a way to invest in mutual funds wherein one invests a fixed amount of money on a pre-decided date every month or quarter. The idea is to bring stability to your financial goals with steady investments periodically. The amount collected lets you purchase a certain number of units in a chosen fund like equity, debt, hybrid and so on. With SIPs, investors can create huge savings in the long run as they get to invest in the fund during the highs and lows. To make it hassle-free, investors can also give a standing instruction to their bank to transfer the amount directly from your bank account into the chosen <keyword id="6354820" type="General" weightage="20" keywordseo="mutual-fund" source="Orion">mutual fund</keyword> SIP on a fixed date every month or quarter. IPO Initial public offering (<keyword id="35156" type="General" weightage="20" keywordseo="ipos" source="Orion">IPOs</keyword>) is basically stock offered by private companies to investors in order for them to go public and list their shares on exchanges. While it is true, IPOs are becoming a very attractive market opportunity for retail investors, one also needs to pick IPOs after proper research. Investors can buy one lot of IPO shares for around ₹14,000. So far, 64 IPOs have been listed on the BSE in 2021 with most of them opening with positive returns on listing day. Further, many companies have lined up for the market regulator’s approval to list their shares. Investors are awaiting companies like Life <keyword id="35450" type="General" weightage="20" keywordseo="insurance" source="Orion">Insurance</keyword> Corporation (LIC), Paytm, Nykaa, PharmEasy, MobiKwik to open their IPOs this year. Gold While buying gold is common in festivals like Dhanteras during the Diwali week, <a href="https://www.businessinsider.in/stock-market/news/titan-kalyan-jewellers-and-other-jewellery-stocks-rally-in-last-one-month-on-high-bullion-prices/articleshow/87156003.cms">demand </a>for gold has risen with the increasing gold prices. With the wedding and festive season on the go, demand for gold has got a boost. One of the leading jewellery companies, Titan, <a href="https://www.businessinsider.in/stock-market/news/shares-of-titan-surge-10-entering-the-2-trillion-club-as-festivities-pent-up-demand-for-gold-jewellery-watches/articleshow/86832311.cms">confirmed </a>that there has been a strong comeback in gold demand in the last three months. Meanwhile, one can also buy digital gold and avoid possession of physical gold through several investment platforms like Google Pay, Paytm, Groww and even on Tanishq website. Insurance With growing uncertainties in our lives, having an insurance policy that protects your expenses during difficult times is a must. If you have not bought yet, now is the time. Life insurance provides financial cover for a contingency linked with human life, like death, disability, accident, retirement etc. Meanwhile, a general insurance company offers insurance policies to secure health, travel, motor vehicles, and home. It is important to have an insurance policy as it ensures financial security in case of any accident in life. Public Provident Fund PPF is one of the safest investment options to start with that can help you secure your retirement. The PPF has a minimum tenure of 15 years with as little as ₹500 to open an account. You can open a PPF account through the post office or in any nationalised bank. Moreover, income tax exemptions are applicable on the principal amount invested in a PPF account. The interest rate for PPF is set and paid by the government for every quarter which is currently at 7.1%, more than the savings rate in banks. SEE ALSO: <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/stock-market/news/bharti-airtel-future-retail-ril-and-other-stocks-to-watch-out-for-on-october-21-as-markets-remain-cautious/slidelist/87174559.cms">Bharti Airtel, Future Retail, RIL and other stocks to watch out for on October 21 as markets remain cautious</a> <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/tech/news/amazon-prime-subscription-will-soon-cost-you-up-to-50-more/articleshow/87175961.cms">Amazon Prime subscription will soon cost you up to 50% more</a>

Five ways to invest money saved on crackers this Diwali

We live in a fast changing world which has made it necessary for everyone to be financially adept to learn ways of saving in order to generate additional income. However, planning and executing a financial plan needs to stay up with the economic realities of the times. Here are some financial practices that can ensure your financial wellbeing. <cmsannotation type="cmsannotation" annotationid="1. Invest early" comment="subhead" text="1. Invest early">1. Invest early</cmsannotation> The foundation of a good financial plan is saving. However, to build on this, one needs to diligently invest as early in life as possible. It can start with simple low-risk instruments but should a good investor who gets comfortable always upgrade to high-yield instruments soon. Starting at a young age also ensures that one is confident of taking advantage of better opportunities by the time one starts making bonuses and increments in their professional life. Those who start late tend to make costly mistakes than the former. Equities is possibly the best investment class that there is for retail investors. They offer good results and tend to move with greater economic trends like inflation and much more, to offer extra income at the end of the cycle. While real estate investments are a necessity for most people, parallel equity investments too have turned into a norm, taking over from bank deposits and gold. <cmsannotation type="cmsannotation" annotationid="2. Diversify your portfolio" comment="subhead" text="2. Diversify your portfolio">2. Diversify your portfolio</cmsannotation> Ensure that there is always a good mix of long-term and short-term investments. While long-term instruments like index-linked passive funds can provide good yields and are more secure, short-term investments in other forms of mutual funds can help improve the liquidity of one’s portfolio. Trading individually too can be much more rewarding and accessible since they do not involve the fees that mutual funds do. However, it also tends to take up a lot of time and effort. However, online trading has made it much simpler and real-time. Trading platforms like<a href="https://binomo.com/en/promo/l88?a=da7c9a65ffbc&amp;ac=222&amp;sa=businessinsider222"> Binomo</a> make it hassle-free for investors to monitor their portfolio with alerts and advanced tools. <keyword id="13184181" type="General" weightage="20" keywordseo="ftt-on-binomo" source="Orion">FTT on Binomo</keyword> gives results on a short-term basis involving a 60 second to 60 minute time frame to make a forecast. It is one of the rare platforms that allow users to practice before venturing into real time trading with a Demo account. The investors can access their accounts 24x7. Funds always stay safe during any transaction as it uses SSL protocol to ensure that all data is encrypted. <cmsannotation type="cmsannotation" annotationid="3. Create a safety net" comment="subhead" text="3. Create a safety net">3. Create a safety net</cmsannotation> A good financial plan should not bet against the odds, but should be sturdy enough to survive them. This form of security net can be provided by insurance. One should also plan against many things that could go wrong with term insurance, health insurance, critical illness insurance and personal accident insurance. While the payouts might weigh in on the annual budgets, they can come in handy when things go wrong. <cmsannotation type="cmsannotation" annotationid="4. Plan for tax" comment="subhead" text="4. Plan for tax">4. Plan for tax</cmsannotation> A good investment provides good results after tax. Since tax tends to be an after-thought for most investors, their income might be slashed after an IT filing or a demand. To avoid untowards surprises, account for tax in every investment and manage the diversity based on the same. The tax department tends to be benign on long-term investments in equity too, so include a good mix of such instruments in your portfolio to ensure your results beat the markets and taxation alike. Make sure you include instruments that provide for tax deduction under Section 80C and Section 80D - like life insurance premium, ULIPs, PPF, EPF, health insurance and more. <cmsannotation type="cmsannotation" annotationid="5. Have a good retirement plan" comment="subhead" text="5. Have a good retirement plan">5. Have a good retirement plan</cmsannotation> For the last few generations, buying or building a home is the best retirement plan especially for those with pension payouts. However, very few who have started working in the 90s and after have the luxury. Most private sector jobs do not offer pensions, and even those who offer such might not account for much due to inflation, and can only work as a supplementary income. An equities-based additional income can offer the cushion against time, for those who have to retire or intend to retire early. Most investment advice hence comes back to equities and while investing one must be wary of frauds in the process. <a href="https://binomo.com/en/promo/l88?a=da7c9a65ffbc&amp;ac=222&amp;sa=businessinsider222">Binomo</a> is a category “A” member of the <keyword id="1182831" type="General" weightage="20" keywordseo="financial-commission" source="Orion">Financial Commission</keyword> which makes it reliable and also guarantees transparency in services. It also has a Compensation Fund in place which offers protection up to €20,000 per case, if a member refuses to follow a Financial Commission judgement, in case of an issue. The platform is present in 133 countries and also offers training and financial knowledge for beginners. Disclaimer:This content is created by Times Group's Mediawire on behalf of Dolphin Corp. Operations with over-the-counter (OTC) financial instruments are associated with significant risks. Before trading on the platform, one needs to analyse their financial capabilities.

Five financial management tips to avoid common pitfalls

<div class="KonaFilter image-container display-table float_right"><div><div class="image on-image"><a href="http://pictures.reuters.com/C.aspx?VP3=SearchResult&amp;VBID=2C0FCI5I01AOG&amp;SMLS=1&amp;RW=1440&amp;RH=716#/SearchResult&amp;VBID=2C0FCI5I01AOG&amp;SMLS=1&amp;RW=1440&amp;RH=716&amp;PN=2&amp;POPUPPN=100&amp;POPUPIID=2C04080OUZF72">REUTERS/Enrique Castro-Mendivil</a> A switch from RPI to CPI would cost pensioners an average of £20,000. </div></div></div>Britain is in the midst of an unprecedented pensions crisis, with figures out this week showing the funding deficit is approaching half a trillion pounds.The gap between how much companies have promised to pay employees when they retire and how much they will have when that happens is estimated by the Pension Protection Fund (PPF) at £459 billion ($606 billion). Graham McLean, head of pension scheme funding at Willis Towers Watson, said wearily in an emailed statement: "Another month, another record <keyword id="6354868" type="COUNTRY" weightage="60" keywordseo="UK">UK</keyword> pension deficit," giving you an idea of how bad the problem is.Graham McLean, head of pension scheme funding at Willis Towers Watson, said wearily in an emailed statement: "Another month, another record UK pension deficit," giving you an idea of how bad the problem is.Pensions are in such a bad shape because of low interest rates. Funds invest money hoping to make a certain level of return that, over time, will cover them to pay out on pensions. But interest rates are at a rock-bottom 0.25%, making returns hard to find, and many bonds, the favoured investment instrument of funds, are offering negative returns - you actually lose money investing in them.That is bad news for anyone with a defined benefit (DB) pension scheme, which promises retirees a set level of inflation-linked payout. It is <a href="http://uk.businessinsider.com/the-argument-for-final-salary-pension-schemes-being-cut-2016-8">the gold standard of pensions</a> and companies do not really offer them anymore because they are such a liability. Even in climates like today's, the business is still bound to give pensioners a certain level of inflation-linked retirement income.<h2>'Zombie' companies</h2>Companies with DB schemes currently face two unpalatable choices: shovel money that could be used for wage growth and investment into the pension schemes to meet the shortfall; or simply watch their deficits grow.<div class="KonaFilter image-container display-table float_left"><div><div class="image on-image"><a href="http://pictures.reuters.com/C.aspx?VP3=SearchResult&amp;VBID=2C0FCI5I0NY3C&amp;SMLS=1&amp;RW=1440&amp;RH=716#/SearchResult&amp;VBID=2C0FCI5I0N5XE&amp;SMLS=1&amp;RW=1440&amp;RH=716&amp;POPUPPN=44&amp;POPUPIID=2C04082SA7E1J">REUTERS/Mick Tsikas</a>Companies can become 'zombies' - existing only to pay pension liabilities.</div></div></div>The first option could <a href="http://uk.businessinsider.com/bhs-inquiry-hundreds-of-zombie-pension-schemes-in-the-uk-2016-5">turn companies into so-called "zombies,"</a> existing only to meet pension liabilities.The second option might sound reckless but actually is not so crazy. <a href="http://uk.businessinsider.com/sir-philip-green-bhs-pension-crisis-bank-of-england-interest-rates-2016-5">Former Pensions Minister Steve Webb told Business Insider earlier this year</a>: "Higher interest rates and higher inflation would very quickly change the situation." If macroeconomic conditions change, things could rapidly improve.But the problem is, post-Brexit, it does not look like interest rates are rising any soon. In fact, <a href="http://uk.businessinsider.com/bank-of-england-mark-carney-interest-rate-decision-2016-8">the Bank of England cut interest rates for the first time in 7 years, from 0.5% to 0.25%.</a>That was an effort to boost investment and stop the economy falling into recession, but in his efforts to stabilise the economy, <a href="http://uk.businessinsider.com/britain-pension-crisis-explained-bank-of-england-2016-8">Bank of England governor Mark Carney has made the pensions problem worse.</a> He is like a doctor who has stitched up a bleeding wound but left a pair of scissors in the body that will cause problems down the line.<h2>The solutions</h2>Can anything be done to tackle the black hole?The most popular option among businesses is a switch in the measure of inflation used to calculate payouts. DB pensions currently rise in line with retail price inflation (RPI), but many companies want to switch to consumer price inflation (CPI), a generally lower measure.<a href="http://uk.businessinsider.com/government-considers-moving-tata-steel-pension-plan-form-cpi-to-rpi-2016-5">This was the plan put forward by Tata Steel</a>, the down and out steelmaker trying to sell itself. Management hoped that it could make itself more attractive to a potential buyer by reducing the pension liability they would have to take on.<div class="KonaFilter image-container display-table float_right"><div><div class="image on-image">Thomson ReutersTata Steel's attempt to switch from RPI to CPI looks like it has failed.</div></div></div>However, it looks like Tata Steel will lose its bid. <a href="http://www.thetimes.co.uk/edition/business/tata-loses-bid-to-cut-pension-payout-xlj686zns">The Times reports on Wednesday</a> that actuaries speaking to the government say it is off the table after former Business Minister Sajid Javid, a cheerleader for the plan, got moved along in Theresa May's reshuffle.Many people strongly oppose a switch from RPI to CPI and analysis by pension consultancy Hymans Robertson (originally done for the Financial Times but seen by BI) shows such a switch would cost the average DB pensioner £20,000.This is considerably better than the £45,000 haircut pensioners on average take if their company goes bust and the scheme falls into the state-backed "pensions lifeboat," the Pensions Protection Fund. But still, pensioners would ideally not want a haircut on payouts at all.Even if all the DB schemes in Britain were given free reign to switch from RPI to CPI it would not solve the problem. Such a switch would only shave £175 billion off the deficit, according to Hymans Robertson. That is less than half of the total deficit.<h2>'Ride roughshod over schemes'</h2>Hymans Robertson has two other proposals to tackle the pensions black hole. The first would allow pension scheme to reduce reevaluations and pension increases to the statutory minimum, even if member's had previously been promised a better deal.This would "ride roughshod over schemes trust deed and rules, but provide an even bigger release of pressure," says Hymans Roberston's head of corporate consulting Jon Hatchett. He and his team estimate this could shave up to £350 billion off the pension deficit.Then, finally, there is the nuclear option. Hatchett explains:"This would be to enable schemes in dire straits to stop paying pension increases for a limited time, until scheme funding and business performance recover. This is known as 'conditional indexation'. Allowing struggling schemes to temporarily stop paying pension increases could help them get back on track while avoiding permanent cuts to members' pensions. It could be a way to create the breathing space to allow businesses to turn themselves around rather than being pulled down by struggling pension schemes."This would be the 'least worst' option for members. The cutbacks only apply when full benefits are not affordable, and members at least retain the chance of getting their increases back if the scheme's or sponsor's position improves. For many that's likely to be a better outcome than entering the PPF where they'd see an irreversible cut in value of £45,000 over the course of their retirement."While it might be the "least worst" for members, it is highly controversial and Hatchett says it would have to "come with a hefty risk warning and would need watertight safeguards." This includes a suspension of dividends while the pension freeze is in effect.<div class="KonaFilter image-container display-table float_left float_right"><div><div class="image on-image">Reuters/Dylan Martinez The Bank of England is more worried about stimulated economic growth than tackling the pension black hole. </div></div></div>The problem is, as Willis Towers Watson's McLean says: "Policymakers do not appear to be singing from the same hymn sheet."The Pensions Regulator has said that employers should typically expect to increase contributions so that schemes do not have to stay in deficit for longer, though that was before the big increase in deficits since the referendum," he says in an emailed statement."Meanwhile, the Bank of England says that higher corporate pension contributions could stifle wage growth, dividends or investment, but that that this need not be a big worry because many companies can simply extend deficit recovery periods instead of contributing more."Policy makers are stuck between a rock and a hard place, torn between concerns over growth, in a precarious state post-Brexit, and concerns over the pensions black hole. Both are interlinked but require seemingly opposite actions.Right now growth is winning, but whichever way you look at it the pensions situation is bad. <div class="margin-top"> <h3>NOW WATCH: <a href="http://www.businessinsider.com/grant-cardone-money-mistake-millionaire-finance-2016-9">Self-made millionaire reveals the biggest money mistake you might be making</a></h3> <div> <div> <div class="ooyala-video-player" data-video-autoplay="false" data-video-id="5ndWJvNTE6dTp1-ts1dr-VyPMtF3vtKC" data-player-variable="ooyalapopvideo" id="ooyalaplayer_popvideo" style="width:1280px;height:720px"></div> </div> </div> </div>

You Searched For "gold vs ppf" and got 5 results

comparison between Gold vs PPF: which Is better For Investment

BI India Bureau

Indians Prefer Gold, Mutual Funds For Investments

Purba Das

Five ways to invest money saved on crackers this Diwali

Bhakti Makwana

Five financial management tips to avoid common pitfalls

Insider Studios

The top plan to tackle Britain's pension crisis would costs retirees £20,000 each - and still wouldn't solve things

Oscar Williams-Grut

Popular Keywords

Buying Guides

You Searched For "gold vs ppf" and got 5 results

comparison between Gold vs PPF: which Is better For Investment

BI India Bureau

Indians Prefer Gold, Mutual Funds For Investments

Purba Das

Five ways to invest money saved on crackers this Diwali

Bhakti Makwana

Five financial management tips to avoid common pitfalls

Insider Studios

The top plan to tackle Britain's pension crisis would costs retirees &#163;20,000 each - and still wouldn't solve things

Oscar Williams-Grut

Popular Keywords

Buying Guides

The top plan to tackle Britain's pension crisis would costs retirees £20,000 each - and still wouldn't solve things