E-gold/ what is E-gold/E-gold investment

E-gold! Gold has always been a investment destination for the people across the world. It has always given good return over a period of time. People traditionally invest and store them for bad times. But there is a problem with the safety of gold. There has always been an apprehension for theft and robbery. But with e-gold there is not such type of apprehension. It is a non-traditional way of investing in gold.

E-gold

What is E-gold?

E-gold is an electronic form of the  natural Gold. It is traded on National Spot Exchange as an electronic form of Natural Gold.

If one buy a unit of e-gold at the National Spot Exchange, the same amount of natural gold are kept in a safe house and you get the no. of units equivalent to your invested amount.

You can get its physical delivery as your wish. National Spot Exchange facilitate a platform at the national level for gold trading. It ensures its price and purity.

It is sold in the denominations of one gram and its multiples. Its one unit is equivalent to one gram. It is stored in your Demat account with other securities. It is a simple, quick, reliable and cheap way of investment.

Benefits of E-gold

There are so many benefits of E-gold that it is rapidly going popular in investors.

• This is the reason for its popularity in general mass. When someone buy natural gold from a shop he cannot be sure of its purity but with E-gold there is no such apprehension. E-gold is sold with its maximum purity.
• If you have gold in its physical form there is always a risk of robbery and theft. You keep it either in a safe place or in the Bank locker. But in E-gold your gold is kept in a safe house at a warehouse of NSEL and the equivalent unit of E-gold is kept in the electronic form in your Demat account.
• The E-gold is available in one gram denominations and its multiples. If you wish to buy one gram of natural gold, it will be a little difficult for you. So, E-gold is very convenient.
• Transaction of E-gold is very simple than natural gold. It is sold by one clique of your computer Keyboard. And you can buy it by the same way.
• The price of Natural gold varies region to region. But the price of E-gold is same across the whole country.
• You have to sell the Natural gold at a discount but the E-gold is sold at same market price.

All the above features of E-gold make it very popular investment option. It has given a very good return over a period of time.

So friends what are you waiting for, make use of this investment option. If this article is any use of you like and comment it.

Systematic Investment Plan

Systematic Investment Plan

What is Systematic Investment Plan?  What is its purpose? In our modern society there are many investment tools are available, but we do not know much about them. 

These tools are able to counter the effects of Inflation. We only know and use traditional ways of investment like fixed deposits and insurance.

Today I am going to answer these and many more Questions like this in this article. 

What is Systematic Investment Plan

systematic investment plan.

It is popularly known as SIP. SIP is a way of investment in Mutual Funds. 

If you plan to invest a certain amount in a particular MF  in Weekly, Monthly, Quarterly or Half yearly basis, it is called a SIP. 

The SIP amount could be as low as 100 rupees. Every time when you invest you get certain no. of units. 

Every unit have a value that is called NAV. The NAV( Net Asset Value) is determined by stock market. 

As you know that in a mutual fund your fund is invested in share market by The Fund Manager of that Mutual Fund, its NAV value fluctuates according to the share prices. 

If the market is down, the NAV of the said fund is low and you gets more Units. And if the Market is high, the NAV of the said Fund is also high and you get less No. of units accordingly.

How to start a Systematic Investment Plan.

SIP in Mutual Fund is very beneficial in long time. So, First you should determine your investment goal. 

Second, you should determine your Time Period to get that Goal. 

Third, You should determine your SIP amount. 

Fourth, You should determine a good Mutual Fund plan. 

You should take a investment adviser for that. Since your SIP amount Debits automatically from your bank's Saving account, so you should have a Saving Account with Cheque Book facility. 

Benefits of Systematic Investment Plan.

If you get invested in Ten years or more it will be very beneficial for you. Some Awesome benefits of SIP-

• Discipline in Investment- Discipline is a key to success in a long term investment in SIP. Your small investment becomes a large corpus in a long run. 
• Flexibility- Although it is advised to invest for a long term in Mutual Fund but you may exit anytime from your Plan and stop your SIP.
• Cost averaging-When you invest in a MF through Systematic Investment Plan there is a good possibility for you to buy it at average purchase price. So, it gives you the benefits of Cost Averaging.
• Power of Compounding- It gives you the Power of Compounding and the Power of Compounding works very well in the long term. 

So, friends Systematic Investment plan is becoming very popular these days as SEBI is projecting it.
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