Ep.1: Should we invest in Gold | Investments Ki Baatein with Nilesh Shah

Summary

In this episode of 'Investments with Nesa,' the discussion centers on gold as a crucial asset in Indian investment portfolios. Nesa, managing director of Kotak Mahindra Asset Management, emphasizes the emotional and practical aspects of gold investment, including the importance of purchasing gold wisely to avoid high premiums and risks associated with small purchases. He recommends government-backed Sovereign Gold Bonds and gold ETFs as superior investment options. With insights from his 25 years of experience, Nesa advises listeners on balancing gold with other asset classes, especially in the context of changing market dynamics and personal financial goals.

Takeaways

• 😀 Understanding the importance of effective communication can enhance personal and professional relationships.
• 📊 The script emphasizes the role of active listening in fostering better interactions.
• 💬 Non-verbal cues, such as body language and facial expressions, significantly impact how messages are received.
• 🔄 Feedback is crucial; it helps clarify misunderstandings and improve ongoing conversations.
• 🛠️ Utilizing tools like paraphrasing can ensure that both parties are on the same page.
• 💡 The script highlights common barriers to communication, including assumptions and distractions.
• 🤝 Building trust through consistent and transparent communication is essential for collaboration.
• 📅 Regular check-ins can help maintain clarity and prevent issues from escalating.
• 🚫 Avoiding jargon and overly complex language makes communication more accessible to all.
• 📚 Continuous learning and adapting one's communication style to different audiences can lead to more effective exchanges.

Q & A

What is the significance of gold in Indian culture as mentioned in the podcast?

Gold holds emotional and cultural value for Indians, often associated with auspicious occasions and family traditions. It is commonly gifted during weddings, festivals, and significant life events.

How has the speaker's investment journey with gold evolved?

The speaker's investment journey began at birth with a gift of gold from grandparents. Over the years, they have seen the price of gold increase significantly and emphasize the importance of making informed investment decisions.

What mistakes do people commonly make when investing in gold?

Common mistakes include investing based on tips without proper research, purchasing gold in small denominations leading to high making charges, and relying on the credibility of local jewelers without verifying their reliability.

What are some recommended ways to invest in gold according to the podcast?

The podcast recommends investing in Sovereign Gold Bonds (SGBs) for long-term holding, gold ETFs for shorter-term investments, and buying physical gold in larger quantities to minimize premium costs.

Why is the Sovereign Gold Bond scheme considered a good investment?

The Sovereign Gold Bond scheme offers a coupon income, tax-free appreciation upon maturity, and eliminates risks associated with theft or loss, as it is held in demat form.

What should investors consider regarding liquidity when purchasing gold?

Investors should be cautious about the liquidity assurances given by jewelers, as they may not always have the capacity to buy back gold from numerous customers simultaneously.

How does the podcast suggest women approach gold investments?

The podcast encourages women to save and invest in gold through safer avenues like gold ETFs and SGBs, rather than relying solely on physical gold purchases, which can have higher risks and costs.

What is the importance of understanding gold pricing in the current market?

Understanding gold pricing is crucial because it includes factors like import duties and taxes that can significantly affect the final cost of gold. Awareness of these can help investors make better purchasing decisions.

What advice does the speaker give regarding the amount of gold to hold in an investment portfolio?

The speaker suggests that the amount of gold in a portfolio should be based on individual financial goals and risk profiles, advising that it should also include any physical gold holdings like jewelry.

How do gold ETFs differ from gold mutual funds?

Gold ETFs are traded on exchanges and require a demat and trading account for investment, while gold mutual funds (or funds of funds) invest in gold ETFs but typically have higher expenses and do not require a trading account.