Category: Finance

Every time gold prices hit a new high, the same question comes up — is it the right time to buy gold or have we missed the train?

Gold has been on a continuous rally for the last few years. Central banks around the world are buying and holding gold in huge quantities. Naturally, many investors — especially in India — are wondering if they should also invest in gold, and if yes, how to do it the right way.

In this blog, I’ll share my personal experience of investing in gold — how much I allocate, what instruments I use, what worked for me, and what didn’t. This is not financial advice — just my real story and learnings as an Indian investor.

Why I Invest in Gold

Gold is one of the oldest and most trusted assets in India. It acts as a hedge against inflation, a safe store of value, and a liquid emergency fund.

For me, gold is not a short-term trade. It’s a part of long-term financial stability. I see it as a core diversification asset — something that balances my equity-heavy portfolio.

My Gold Allocation

As a family, our current gold allocation is around 15% of our investable wealth.
This includes everything — stocks, mutual funds, debt, FDs, and cash — but not real estate.

Interestingly, this percentage wasn’t planned. It just happened naturally over time. But now, with more awareness, we’re gradually increasing it to 20%.

The right allocation, however, is personal. It depends on your comfort, goals, and how you sleep at night. Some investors prefer 5%, others go up to 30%. There’s no universal formula — it’s about what helps you stay balanced and confident.

My Gold Portfolio: Instruments I Use

I invest in multiple forms of gold — both physical and digital. Here’s how my gold portfolio looks right now:

1. 50% in Physical Gold & Jewellery
2. 40% in Sovereign Gold Bonds (SGBs)
3. 10% in Gold Coins & Bars
4. A tiny portion in Digital Gold (via Gullaq)

Let’s go through each one.

1. Sovereign Gold Bonds (SGBs)

Sovereign Gold Bonds are one of my favorite instruments for long-term gold investing.

When I started buying SGBs, not many people were optimistic about them. But over time, they’ve proven to be excellent.

Here’s why I like them:

1. The value of my SGBs has almost doubled in 3–4 years.
2. I receive the promised interest on time every year.
3. The redemption process has been smooth.

Challenges

1. Long Lock-in period [ 8 Years]
2. You can invest only when the government issues new tranches.

If the scheme opens again, I’ll definitely invest more.

2. Gold Coins and Bars

I also hold some gold coins and bars — mostly bought from reputed sources like MMTC and Augmont

These are 99.99% pure and government-approved, which means there’s very little risk of impurity.

Pros:

1. Safe and high purity
2. No Making Charges
3. Good for gifting or storing

Cons:

1. You can’t take loans against them easily. Unlike jewellery, banks or gold loan companies don’t usually accept coins and bars as collateral.

So, while they’re great to own, they’re not very useful during emergencies.

3. Digital Gold via Gullaq

I started experimenting with digital gold using the Gullaq app.
I invested ₹75,000 around 8–9 months ago. Today, that investment is worth around ₹1.3 lakh [due to rising price of gold]

I’ve received all the interest and referral bonuses on time, so the experience has been good so far.

However, I haven’t redeemed yet. So the real test will be when I try to convert that digital gold into physical gold or cash.

If you’re planning to invest with Gullaq, you can use my referral code mentioned at the end of the post — it gives you a discount & helps me as well

4. Gold ETFs (Why I Haven’t Invested Yet)

Gold ETFs are a great product.

1. well regulated
2. easy to start
3. no issue of theft or purity

But I haven’t invested in them for one simple reason:
You don’t actually own physical gold.

To me, gold works best as a tangible asset — something you can hold and store yourself.
That’s my personal bias. If you prefer digital convenience, ETFs are an excellent option.

5. Monthly Jewellery Purchase Plans

This is something I’m planning to start soon — buying gold jewellery in small monthly instalments.

Why I like the idea:

1. You actually hold physical gold — your hedge is real.

2. It doubles as jewellery — you can use the asset & brings joy to your family.

3. Big discounts on making charges which is otherwise considered biggest drawbacks of investing in jewellery

4. It works like a gold SIP — you invest in a disciplined way and average out the cost.

5. You can easily pledge jewellery for a loan in case of emergency.

Of course, jewellery has downsides — storage, safety, making charges — but for me, it’s still a meaningful and emotional form of wealth.

My Key Takeaways on Gold Investing

• Gold should be part of your long-term plan, not a short-term bet.

• The ideal allocation depends on your comfort and goals.

• Diversify across instruments — SGBs, jewellery, digital gold, coins etc.

• Always buy from trusted and verified sources.

• Don’t chase price movements — buy gradually and hold.

Gold gives peace of mind, especially during uncertain times.

Final Thoughts

Gold will always have a place in Indian households — not just emotionally, but financially.
Whether you invest through SGBs, coins, or digital gold, the key is to stay consistent and invest smartly.

If you found this useful, share it with someone who’s thinking about investing in gold.

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⛔ DISCLAIMER ⛔
This is not financial advice. I am not a registered advisor. I am sharing my experience purely for educational purposes. Please consult a licensed professional before investing.

When we invest money, we all want to know how much return we are actually getting. But just looking at how much your money has grown is not enough. You need to understand how to measure it properly. Two common ways are CAGR and XIRR. Let’s understand both in simple words.

[Download sheet to find your XIRR or CAGR here [Make a copy to use this sheet]

What is CAGR? (Compounded Annual Growth Rate)

CAGR tells you how much your investment has grown every year, on average, if it had grown at a steady rate.

Useful when:

• You invest a lumpsum amount once.
• You hold it without adding or withdrawing money in between.

Example:

You invested ₹1 lakh. After 5 years, it becomes ₹2 lakh.
CAGR will tell you the steady % growth per year that doubled your money. It tells you the constant annual rate at which your investment grew, assuming the earnings also grew each year (that’s the “compounding” part!).

It’s like saying: “If my money had grown at a fixed rate every year, what would that rate be?”

Limitation of CAGR:

CAGR assumes one-time investment. It cannot handle multiple investments, withdrawals, or SIPs.

What is XIRR? (Extended Internal Rate of Return)

XIRR is like a supercharged version of CAGR. It handles multiple investments, SIPs, SWPs and irregular cash flows.

Useful when:

• You are investing monthly (SIP)
• You are investing at random times
• You withdraw money in between, randomly or systematically

How it works:

XIRR looks at the amount, date, and frequency of all your cash flows and gives you a realistic annual return, considering all those movements. It’s calculated easily in Excel or financial apps.

Why do we need XIRR

XIRR is the only accurate way to know your actual returns, interest paid in products like SIP, EMI, SWP, Bonds/SDI monthly payouts.

CAGR vs XIRR — What’s the Difference?

🎯 Which One Should You Use?

Final Takeaway

• CAGR is great for understanding growth over time when you invest once and forget.

• XIRR is better when your investments happen over time, like SIPs or multiple additions.

• Both help you see the real performance of your money.

• Download sheet to find your XIRR or CAGR here [Make a copy to use this sheet]

Summary

After 12 months of actively investing in fixed income instruments, I’ve decided to step back from hands-on investing—but not for the reasons you might think. Starting with just ₹10,000, my portfolio size grew to over ₹50 lakhs across multiple platforms including bonds, SDLs, invoice discounting, and P2P lending. While the experience has been largely positive with minimal delays and good returns, the time-consuming nature of managing reinvestments at scale led me to transition to a managed approach with a dedicated portfolio manager with Grip.

The Beginning: From ₹10,000 to ₹50 Lakhs

Twelve months ago, I started with what would become an eye-opening journey into India’s fixed income landscape. I started with a modest ₹10,000 & began exploring the various platforms that have emerged to democratize access to alternative fixed income instruments.

In retrospect, I believe I became too comfortable too quickly — my investments increased from ₹10,000 to over ₹50 lakhs in just one year. And I think I was lucky to not have seen any significant delays or defaults in this time. This wasn’t just about the returns; it was about understanding an entirely new asset class that retail investors now have access to, including bonds, SDIs, invoice discounting, and P2p lending.

The Bright Side: Why Fixed Income Makes Sense

1. True Diversification for Retail Investors

For too long, retail investors have been limited to just four main asset classes: equity, fixed deposits, real estate, and gold. Fixed income instruments bridge a crucial gap, offering returns better than traditional FDs while maintaining a level of predictability that volatile assets simply can’t match.

2. Predictability in an Uncertain World

Even assuming these instruments carry similar risks to equity (which platforms dispute), the predictability they offer is invaluable. This predictability transforms financial planning from guesswork into strategic decision-making. When you know what to expect, you can plan better.

3. Perfect Timing for Early Adopters

We’re at a sweet spot in the market’s evolution. These platforms have been operating for 3-4 years, proving their mettle while regulatory bodies are now providing formal recognition and approvals. This combination suggests we’re getting in while returns are still attractive, before the market matures and potentially offers lower yields.

4. Tax Efficiency (For Some)

The taxation structure follows your income slab, which can be a significant advantage for investors in lower tax brackets. If you’re in the 0% or 10% bracket, this becomes a compelling reason to allocate funds here.

The Challenges: What They Don’t Tell You

1. The Risk of the Unknown

Let’s be honest—these are relatively new instruments for retail investors. While institutional players have used them for decades, we’re still learning what can go wrong. The theoretical appeal is strong, but practical risks remain largely unexplored territory for retail participants.

2. The Reinvestment Trap

This was my biggest operational challenge. Fixed income instruments generate regular returns—monthly, quarterly, or annually. Each payment requires a reinvestment decision. As my corpus grew, this became increasingly time-consuming. What started as an interesting side project evolved into a part-time job.

3. Tax Implications at Scale

For investors in the 20%+ tax brackets, the tax treatment becomes less favorable, potentially limiting the optimal allocation to these instruments.

Delays & Defaults: Biggest Scare of Fixed Income

If i had to summarise my 12 months — the results have been surprisingly positive.  Delays have been minimal—far fewer than I anticipated. Yes, there have been some issues — (1) Indiap2p & (2) BetterInvest, but my invested sum in these 2 is on the lower side. So, for me it does not matter much, but you can be careful while investing with these.

Even when SEBI took action against platforms like Altgraaf and Tap Invest regarding NCD issuances—repayments for my investments remained on schedule and matured without any hassles.

My Current Strategy: Quality Over Quantity

I’ve transitioned from active exploration to focused management. Most of my fixed income corpus now sits with Grip, utilizing their Portfolio Management Service (PMS)—though they’re not actively promoting this service as it’s still in pilot phase.

While I maintain positions across multiple platforms including Altgraaf, Wint, BetterInvest etc. I’m no longer actively seeking new opportunities or platforms. The relationship with Grip has evolved to where they handle the operational complexity while I focus on strategic allocation.

Key Takeaways for Potential Investors

Consider Fixed Income If:

• You’re seeking diversification beyond traditional retail options
• You value predictable returns for financial planning
• You’re in a lower tax bracket
• You have time to manage regular reinvestments (or access to managed services)

Approach With Caution If:

• You’re in a high tax bracket (20%+)
• You prefer completely hands-off investing
• You’re uncomfortable with relatively new asset classes
• You’re looking for equity-like growth potential

The Bottom Line

My pause in active fixed income investing isn’t a rejection of the asset class—it’s an evolution toward more efficient management. The fundamentals remain strong, the regulatory environment is improving, and the diversification benefits are real.

The key is understanding that successful fixed income investing requires either significant time investment or access to quality management services. For those willing to navigate the operational complexity or partner with the right platform, the opportunities remain compelling.

As the market matures, I expect we’ll see more sophisticated products and better operational frameworks. For now, the early-adopter advantage is real, but it comes with the responsibility of active management.

This reflects my personal experience and shouldn’t be considered investment advice. Your risk appetite, financial situation, and tax implications may differ significantly from mine.