Which has been a favorite investment option amongst Indians of all age groups till date? 

It’s Gold, right? For centuries, gold has been a top investment choice for Indians, valued not just for its potential returns, but also for its sentimental significance. It's seen as a reliable way to build wealth that can be passed down through generations. However, with the rise of paper money and modern finance, new investment options like mutual funds have emerged. These funds are market-linked instruments that invest in a mix of securities, including stocks and bonds. 

In today's investment landscape, people face a big decision between these two options: Digital Gold and Mutual Funds. While both have their perks, digital gold has gained a lot of attention lately, leading to debates about whether it's better than mutual funds. Let’s take a closer look and help you find the best investment option for your portfolio 

What is Digital Gold? 

Digital gold is like having gold in your phone or computer. Instead of holding physical gold bars or coins, you own digital tokens or certificates that represent real gold stored by a trusted custodian. You can buy and sell this digital gold online or through apps, just like you would with stocks or other investments. Digital gold provides a more convenient and accessible way to invest in gold without the logistical challenges associated with storage and security. 

IndiaLends recently launched their new product IndiaLends digital gold. This innovative offering represents a significant step forward in the world of investment, providing users with a convenient and secure way to invest in gold. Backed by actual gold reserves and powered by cutting-edge blockchain technology, our Digital Gold product offers unparalleled transparency and peace of mind. 

How to buy IndiaLends digital gold? 

To buy IndiaLends digital gold, follow these steps: 

1.       Sign In: Log in to your IndiaLends account or create one if you haven't already. 

2.       Choose the Buy Gold Option: Look for the ‘Buy Gold’ banner in the app menu. 

3.       Choose Gold Amount: Select the amount of gold you want to purchase. 

4.       Make Payment: Proceed to the payment section to complete the transaction 

5.       Confirm and Send: Double-check all the details, confirm your purchase and the gold will be added to your secured vault.

What are Mutual Funds? 

Mutual funds are investment vehicles that pool money from multiple investors to invest in a diversified portfolio of securities such as stocks, bonds, money market instruments, or a combination thereof. These funds are managed by professional fund managers or investment firms who make decisions regarding the allocation of assets within the fund. Investors in mutual funds purchase shares or units of the fund, which represent their proportional ownership of the underlying securities in the portfolio. 

Types of Mutual Funds:

How to invest in mutual funds? 

Where to invest in mutual funds? 

- Directly through Fund Companies 

- Through Online Brokerages 

- Through Financial Advisors 

- Through Banks 

- Robo-Advisors 

Choosing digital gold over mutual funds offers several compelling advantages. 

- Digital gold provides stability and security in volatile markets, as it is historically less risky compared to mutual funds tied to the stock market. 

- It offers easy liquidity, with the ability to convert gold into cash quickly and hassle-free, unlike mutual funds which may have redemption restrictions. Additionally, investing in digital gold is convenient and accessible, as it can be done online through various platforms and apps.  

- With the transparency and security provided by blockchain technology, investors can trust in the authenticity and integrity of their digital gold holdings.  

- Digital gold offers direct exposure to the price movements of gold, serving as a reliable hedge against inflation and economic uncertainty.  

Overall, choosing digital gold presents a prudent and reliable option for investors seeking stability and long-term wealth preservation in their investment portfolios. 

Head-to-head comparison 

Conclusion 

You should consider your investment objectives, risk tolerance, and preferences when choosing between digital gold and mutual funds. If you’re seeking direct exposure to the price of gold with the convenience of digital transactions Digital gold may appeal to you, while looking for diversified exposure to a range of assets managed by professionals then mutual funds may suit you. 

Ultimately, the choice between digital gold and mutual funds depends on your individual circumstances and investment objectives. You may even choose to incorporate both into your investment portfolio to achieve diversification and balance.