Is your Investment Cash Rich ?

To explain this in simple terms, I would like to put it as an investment in financial assets (Mutual Fund, Equity, etc.) versus an investment in physical assets like (Real Estate, Gold, Commodities, etc). The current trend indicates the people's choice is more towards financial assets. The growth of investments in financial assets has almost been double as compared to last year. However, even today most of the people prefer physical assets over financial assets for their investment needs. What does it mean to be a Cash Rich Investment? It means that investment which can easily be liquidated converted into cash with no tax or minimum tax.  The Long Term Capital Gain (LTCG) in physical assets restricts one to utilize entire sales proceeds for consumption affecting the overall rate of return on investment. When it comes to risk, it is almost on par in both Physical as well as Financial assets with time as the most important factor. Usually, investment in physical assets like Real Estate, Gold are meant for quite a long term of 8 to 10 years and above, with liquidity as one of the important challenges except for investment in Gold. The equity investment over a period of 10 years and above have proven to withstand the market volatility and generate better returns. Therefore, for your investment decisions, too be wise is the best advice. Happy investing 2020 !!!

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Blog Views : 696 07-01-2020