Purchasing Gold On Akshaya Tritiya? Finance Expert Shares 5 Tips For Women

Akshaya Tritiya is an auspicious occasion celebrated among Jains and Hindus. Many people prefer to buy gold on this day or seal deals related to money or property. In 2023, Akshaya Tritiya will be celebrated on April 22.

Since gold is one of the biggest aspects of investment during this festival, we spoke to CA Twinkle Jain, Finance Content Creator, to bring you investment tips. She said that physical gold was the only option people heavily relied on. However, with the pandemic, this thinking has changed, and investors have become more aware of other options.

The expert added that more people are now considering buying digital gold rather than physical gold. They are aware of the difference in costs and returns between the two options.

A few ways of investing in gold include mutual funds, gold ETFs, gold bonds, future contracts and gold leasing. One must select the option depending on the risk appetite and other factors related to it.

This Akshaya Tritiya, you can also invest in gold digitally. Here are a few tips:

Understand Your Risk-Appetite

First, we need to understand what a risk-appetite is. Jain explained if a person is not willing to lose any part of the capital, they have a conservative risk appetite. They would like to invest in safe options.

Sovereign Gold Bonds (SGBs) issued by the RBI are good and safest options. A person who has invested in them can get 2.5% interest in addition to the appreciation in the capital of gold.

Think About Long-Term Investment

Digital gold is a long-term investment plan. If you have a short-term financial goal, this option might not be the right option for you. Our finance expert suggested thinking of investing for at least five to ten years. Only then, you would be able to get a good return.

Know About The Associated Cost

Jain said that every digital gold instrument has an association with a different type of cost. For example, if you invest in a gold mutual fund, it will help you pay management expenses and exit or entry fees. Therefore, one must consider and compare the costs of different options while investing in digital gold.

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Calculate Tax

The tax on physical gold depends on how much time you have held it. If you have kept it for less than three years, there will be a short-term capital gain which would be added to the person’s total income. It would be taxed as per the current slab rates.

If it has been acquired for more than three years, it is taxed at 20% after indexation plus a 4% cess. This is an additional 3% GST on the purchase and making charges if you buy jewellery.

However, the government of India is promoting digital gold (gold investment women must know about). Therefore, Finance Minister Nirmala Sitharaman announced that physical gold can be converted into an electronic gold receipt or e-gold or vice versa. In such a case capital gain tax will not apply to it.

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Pick A Reliable Platform

In the current scenario, there are multiple platforms that offer you an array of investment options. However, you must pick a reliable platform that can offer you assistance at the lowest cost possible. “Investors should opt for platforms regulated by a trusted financial authority and with a good track record,” CA Twinkle Jain added.

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