Is it better to invest in mutual funds or gold?

Investing in gold is less risky and its value increases over time. However, there are no interest or dividends, so investors don't have the option to reinvest, which limits the returns on their investment in gold.

Is it better to invest in mutual funds or gold?

Investing in gold is less risky and its value increases over time. However, there are no interest or dividends, so investors don't have the option to reinvest, which limits the returns on their investment in gold. On the other hand, equity funds earn higher returns compared to gold, which you can reinvest to maximize your profits. Investing in gold or allocating mutual funds depends on the investor's risk tolerance.

It's generally true that gold doesn't offer similar returns to stocks. Therefore, as investors, mutual funds offer better long-term returns, since they are tied to the market. But since gold doesn't lose its value over time, a small part of your wallet may be in gold. In times of crisis, this small portion can provide good coverage and support the overall portfolio.

Lynne Bahoora
Lynne Bahoora

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