Dhanteras is one of the most auspicious occasions in the Hindu calendar. Traditionally, women in India mark this day by buying gold since it is believed to bring prosperity and commences all Diwali festivities.
For long, Indians have favoured investing in physical gold coins and bars due to the high appreciation value of the yellow metal over the years. According to information from the Indian Post Gold Coin Services, about seven decades ago in the late 1940s, 10 kilos of gold cost roughly Rs 88, far less than an airline ticket from Delhi to Mumbai. Today, the price of 10 grams of gold hovers around Rs. 55k. It is therefore, no surprise that it has become a reliable and safe asset class.
Now, new-age investors are going one step further and showing interest in digital gold - a new and alternative method to buying physical bars. One can now buy gold online anytime and anywhere. It is an easier and more convenient way of purchasing with an investment value of as low as Rs. 1. Anyone can buy gold online through three different routes: gold Exchange Traded Funds (ETFs), gold mutual funds, and gold futures contracts.
Herein lies the biggest challenge. Digital gold in India is not regulated by any statutory or financial authorities such as SEBI or RBI. Thus, investment in digital gold becomes a risky adventure. Gold ETFs cost you extra asset management charges and can accrue Long-Term Capital Gains (LTCG) Tax starting from 20%. They also cannot be converted to physical gold coins or bars and are optimal for growing your money tree in the short and medium term. So, if you are thinking of gifting digital gold wallets and vouchers or putting your festive bonus that gives guaranteed returns in the long haul then you might want to consider investing in some other financial product or service such as a life insurance policy.
HDFC Life Smart Protect Plan is a unit linked life insurance plan that builds a foundation for your long-term savings needs and gives protection on a rainy day. A unit linked life insurance plan means that your funds are locked and you cannot withdraw your money invested for five years.
Key Features of the HDFC Life Smart Protect Plan include the following:
It has four plan options that let you choose a cover according to your needs and maximises your benefits.
It presents a versatile choice of 5 fund options with unlimited free switching available under level cover and decreasing cover plan options.
Option to reduce your death benefit after a chosen period under decreasing cover and decreasing cover with capital guarantee plan options
It gives you a minimum assured benefit on maturity under level cover with capital guarantee and decreasing cover with capital guarantee plan options.
Return of 2X to 3X mortality charge from 11th policy year.
Thus, this festive season, if you want to play safe, take fewer risks and grow your corpus with guaranteed returns in the long haul then HDFC Life Smart Protect Plan is an ideal choice.
Visit here to know more about the features and details of the HDFC Life Smart Protect Plan.
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