In mutual fund advertisements, all of us hear the oft repeated warning that, "Mutual fund investments are subject to market risks, please read all scheme related documents carefully". This line is mandated to be released in financial investment related ads because it requires a great deal of effort in understanding how the markets function and how individual stocks are affected due to scores of unforeseeable factors, from policy decision to international market trends.

While investing in the stock or equity market, one has to take into consideration various aspects before jumping and putting the money straight, with little research it is certain that you can't make big gains in the market. But even after investing hours and days into understanding the nuances of the stock market, there is no certainty that your money will grow rapidly, which is why the regulatory bodies ask companies to ask the customer to ‘read all scheme related documents carefully’.

But this is not the case with investing in a safe haven commodity like digital gold. For those who have invested so far in physical gold, digital gold is a simple and cost-effective way to build the yellow metal portfolio. It allows you to purchase, sell, and acquire pure gold in fractional amounts at any time and from any place. Thus, even a minuscule monetary investment of Re. 1 can be used to purchase a small amount of the precious metal.

Below are 5 reasons that you must consider investing in digital gold to boost your portfolio:

Price movement independent of the local market: As discussed earlier, mutual funds or equities are never predictable and even after in-depth research people have ended up losing significant part of their investments. Gold prices, on the contrary, have a habit of bouncing back after a lull period. Its price movement is not exclusively linked to market vagaries or local factors, as MMTC-PAMP digital gold prices are directly linked to the international market.

Less expertise required: It takes years, if not decades for someone to call themselves an expert in the stock market. Seasoned investors also lose money in the market. That is not the case with buying/selling of digital gold. In the long term, gold is guaranteed to give you good returns. Any individual who has the basic knowledge of using a mobile phone, and faith in gold as commodity, can buy/sell digital gold online through apps like Paytm, PhonePe, GPay or through wealth managers like Aditya Birla Capital, Motilal Oswal, HDFC Securities among others. All these platforms offer 24k, 999.9 purity gold from MMTC PAMP.

More Gold per buck: The gold market has seen an upward trend since the past few decades. It has grown almost ten folds if not more in the past one and a half decade. Owing to this record, it is safe to say that if invested for a long period, digital gold can deliver aggressive returns, which may not necessarily be the case with jewellery because it has been seen that jewellers often charge hefty amounts under making charges while buying and melting changes and miscellaneous deductions when you sell gold. There are no making charges when you invest in digital gold and sell it on live rates.

Provides cushion against market crashes - Post the Covid-19 outbreak, the news of stock market crashes have become familiar due to the consistent uncertainty and losses to various sectors. The stock market has reacted with untimely crashes that can give a serious jolt to those investors who only rely on funds for investments in such grim times, pulling out money from the markets in such times is also not the right approach. On the contrary, gold prices are again making a move towards the Rs 50,000/10 gm mark which makes digital gold an excellent instrument to hedge against market uncertainties.

Appropriate for beginners: By now you might have understood that digital gold requires basic understanding of the market (and your preferred app) and is ideal for people who want to start investing but have a low risk appetite. This is because India’s leading precious metal refinery MMTC-PAMP guarantees 24 karat, 999.9 purity of digital gold and ensures that your investment is safe by keeping the gold allocated against your name in a secure vault.