top of page

By:

Kaustubh Kale

10 September 2024 at 6:07:15 pm

Akshay Tritiya and Gold

As Akshay Tritiya arrives, gold once again takes centre stage in Indian households. For generations, buying gold on this auspicious day has been considered a symbol of prosperity, purity, and good fortune. It is not just a purchase. It is an emotion, a blessing, and a tradition passed from one generation to another. But beyond tradition, gold also carries an important financial lesson. Gold is not just jewellery. It is an asset. Gold During Uncertain Times Over the years, gold has proved its...

Akshay Tritiya and Gold

As Akshay Tritiya arrives, gold once again takes centre stage in Indian households. For generations, buying gold on this auspicious day has been considered a symbol of prosperity, purity, and good fortune. It is not just a purchase. It is an emotion, a blessing, and a tradition passed from one generation to another. But beyond tradition, gold also carries an important financial lesson. Gold is not just jewellery. It is an asset. Gold During Uncertain Times Over the years, gold has proved its worth not only during festivals, but also during uncertain times. Whenever the world faces wars, inflation, currency weakness, economic slowdown, or financial panic, investors across the globe look at gold as a safe haven. This is because gold has a unique quality. It is trusted across countries, cultures, and generations. It does not depend on the promise of one government, one company, or one currency. Why Gold Holds Value Unlike paper currency, gold cannot be printed endlessly. Unlike businesses, it does not depend on profits or management quality. Unlike real estate, it is globally accepted and easily valued. This is why gold continues to remain one of the oldest and most respected stores of value. It has survived centuries of change, economic cycles, wars, and financial crises. The Right Role in Your Portfolio That said, gold should not be treated as a shortcut to wealth creation. Equities and equity mutual funds still remain essential for long-term growth. Gold plays a different role. It brings balance, stability, and protection to your portfolio. When equity markets are volatile or global uncertainty rises, gold often provides comfort. A sensible allocation of around 10-20% to gold can help reduce overall portfolio risk.  So basically, while stocks and equity mutual funds play the lead role in your long-term financial goals, gold plays the supporting but essential role. Physical Gold Has Limitations However, the way you invest in gold matters. Buying physical gold during festivals may feel emotionally satisfying, but it comes with practical challenges. There are making charges, purity concerns, storage issues, risk of theft, and liquidity problems. A necklace may be beautiful, but you cannot easily sell only a small portion of it when you need money. Also, when gold is bought as jewellery, the investor often forgets to calculate the actual return after making charges and deductions. Smarter Ways to Invest This is where Gold Mutual Funds and Gold ETFs become useful. They allow you to invest in gold without worrying about lockers, purity, theft, or storage. You can invest flexible amounts, start SIPs, track value easily, and redeem conveniently when required. For investors who want gold as part of their financial plan, these options are far more practical than buying jewellery purely as an investment. Tradition with Financial Clarity Akshay Tritiya is a beautiful reminder that wealth should be built with faith, patience, and clarity. Buying gold is auspicious, but buying it in the right form is financially wise. This Akshay Tritiya, celebrate tradition - but also upgrade your financial thinking. Because true prosperity is not just about owning gold. It is about owning it smartly. (The writer is a Chartered Accountant and CFA (USA). Financial Advisor. Views personal. He could be reached on 9833133605.)

BJP Boost

Updated: Oct 22, 2024

As the dust settles over the recent Assembly elections, the BJP, defying anti-incumbency prediction of political Cassandras and exit polls, is set for a historic third term in Haryana. This will buoy the party after its underwhelming performance in the Lok Sabha polls. The Haryana outcome not only reinforces the BJP’s foothold in national politics but also presents a counter-narrative to the INDIA bloc’s post-election fervour.

Despite the bogey stoked by lingering farmer protests and discontent surrounding the controversial Agniveer scheme, the BJP strategically diversified its approach, relying not solely on Prime Minister Narendra Modi’s star power—evidenced by his reduced number of rallies—but also on a ground-level consolidation of anti-Jat votes. The Congress’s over-reliance on the Jat community backfired, rallying other groups against it. Interestingly, the Dalit vote, which the Congress anticipated would tilt in its favour, has not completely abandoned the BJP.


At the forefront of the BJP's campaign was Chief Minister Nayab Singh Saini, whose relatively short tenure allowed him to distance himself from the decade-long rule of the previous administration. By introducing measures to benefit the backward classes, including a significant income limit increase for OBC employment from Rs. 6 lakh to Rs. 8 lakh, the BJP effectively shifted the narrative in its favour. Their mantra of ‘bina parchi, bina kharchi Naukri (promising jobs without bribes) resonated with voters.


The BJP’s rejuvenated team, led by key figures such as Union Minister Dharmendra Pradhan and state leaders, has seemingly addressed concerns that arose following its poor showing in the Lok Sabha elections. The incorporation of new candidates in place of established leaders provided a fresh face that contrasted sharply with the Congress’s decision to recycle incumbents.


In contrast, in Jammu and Kashmir, the National Conference, in alliance with the Congress, having crossed the majority threshold, reclaimed its historic dominance and is set to form the government. Here, the BJP’s performance in the first Assembly election held after the abrogation of Article 370, fell short despite its strenuous attempt to position itself as a proponent of development.


The electorate’s apparent rejection of hardline factions like the PDP reflects a nuanced response and win for democracy. Notably, the results have shown a significant rejection of separatist candidates, including those from Engineer Rashid-led Awami Ittehad Party and Jamaat-e-Islami, who failed to make a meaningful impact in the polls.


The BJP’s emphatic victory in Haryana redeems its Lok Sabha misstep but also signals a broader political resurgence, giving the party renewed vigour to march into future contests like the crucial Maharashtra Assembly election.

 
 
 

Comments


bottom of page