The Indian festival of Dhanteras, also known as Dhantrayodashi will be celebrated on October 22, 2022. The festival is considered an auspicious occasion to purchase gold.
Many Indian households plan to buy gold on Dhanteras. A recent assessment suggests that gold investments have done well in the long run when the purchase is made on Dhanteras.
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Return on Gold investment
Gold has performed considerably well in the last 20 years. It is 13 times higher from 1990 and ten times higher from 2000. A long investment, thus, yields better results.
A gold investment made five years ago on Dhanteras would have fetched an absolute return of 70 per cent as on October 14, 2022, at a CAGR of 11.2 per cent. The CAGR for the 15-year and 25-year periods are 10.9 per cent and 10.4 per cent respectively.
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Gold is also known to work well against inflation.
A good investment portfolio
Depending only on equities or debt may not be the ideal way to deal with financial investment as market cycles can often bring higher volatility in these financial assets and skew your returns adversely.
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Gold brings more balance and stability to the financial portfolio. A good investment portfolio is one which is designed to maximise returns and minimise risks.