An Auto-investment Plan in digital assets is a plan in which you may acquire gold or silver for a set monthly fee. It allows you to amass gold/silver in smaller amounts over time by making recurring payments. As a result, the monthly installment is utilized on your chosen date to purchase gold/silver at the previous day’s closing price. Let’s take an example: If you set up a monthly Auto-investment Plan of Rs.1000, that money would be used to buy gold/silver on the specified date.

What Does the History Have to Say?

Year on year, gold is approaching a new high point. In the year 2020, gold has returned roughly 16% on investment. With the present state of the global economy, gold is anticipated to soar much more. It is a well-known truth that anytime an economy suffers a major setback, all investors flock to gold as a safe-haven investment.

There are various variables that continue to underpin gold’s present high pricing. Indian associates and hedge funds are buying gold like it’s going out of style. Diwali and the festival season are approaching, and gold demand is expected to rise. This surge in demand throughout the holiday season will drive up the price of gold.

Most experts think this and advise investors to hang on to their gold assets for a little longer. Because of the continued local and global uncertainty, you should store gold and not book profits now. The maximum percentage of gold in the portfolio is intended to be 10%. If an investor has less than 10% exposure to gold, he or she may gradually raise it up to 10%.

Investing Using an Auto-investment Plan

India is the world’s biggest gold consumer, with an annual demand of over 700 tonnes. According to experts, unlike gold coins and bars, for which most jewelers only provide an exchange, digital gold is offered at consistent rates throughout the country. Another benefit of investing in digital gold is that there is no sales tax, VAT, wealth tax, or securities transaction tax.

As the price of gold has hit a pinnacle, most investors are unsure whether to invest or not. Despite the fact that gold has reached its top, you may still invest in it using the digital gold Auto-investment Plan approach. The Auto-investment Plan route will handle cost averaging.

Because you can invest in little amounts, you should avoid investing a large sum of money in gold today because you cannot time the market. The goal of the investment also influences the kind of investment. If parents are investing for the purpose of their children’s marriage, it is best to buy gold jewelry directly, but if you are looking to invest in gold as a pure investment for a decent return, it is best to invest in a gold Auto-investment Plan.

Gold is an excellent investment in terms of returns, but it does not pay interest like a savings account. It does not even provide a dividend, as do equity investments. Some investors are crazy with gold and invest in it like it’s nothing. My suggestion is to adhere to your asset allocation plan and not put all of your money in a single asset class.

Is Gold Auto-investment Plan a Wise Investment Decision?

Yes! Portfolio diversity is one of the many advantages of investing in a gold Auto-investment Plan. Aside from fixed deposits, which pay very little interest, and the stock market, which is exceedingly unpredictable, you may invest in digital gold, which will never go out of style. Gold is one of the safest investments available. Gold Auto-investment Plans are also quite simple to manage in the long term and enable you to invest in tiny quantities according to your financial situation.

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Why Do You Need an Automated Investment Plan?

Do you save aside a portion of your income each month for retirement? If you don’t, you’re gambling with your financial future.

Setting up an automated investing plan is a simple method to keep on track with your retirement contributions. It’s like putting them on autopilot! Then you won’t have to remember to put aside money for investments every month.

You should automate your investing for the following reasons:

It prevents you from spending investment funds.
It’s easy to rationalize a little expenditure after you’ve worked hard and see your salary arrive in your bank account. If you have the money, a night out or a weekend break is acceptable. But it’s not acceptable if the money was intended for your retirement plan. Automation eliminates temptation. Rather than robbing you of power, automating your investments provides you greater control over your spending habits, allowing you to attain your financial objectives quicker.

It assists you in avoiding bad investing ideas.
When you invest your money automatically for the long term, you are no longer vulnerable to ineffective investment strategies such as day trading (when you are likely to lose money) and micro-investing apps (that distract you from producing bigger results).

It puts everyone in your family on the same page.
If you’re married, every month might be a conflict over how much to spend and how much to save. However, when you automate your investing, the choice is made for you. Without additional debate (or disagreements), your money is already put up for retirement.

It saves time and reduces stress.
An auto investment plan eliminates the need for you to manually send your money. And you won’t be concerned about saving enough money each month. With more time on your hands and one fewer item to worry about, you’ll be able to accomplish more of what you like.

It helps you leverage the power of compounding.

It is best to begin investing as soon as possible if you want to be a successful investor. Because investment and its rewards are founded on the power of compounding, early investors may receive bigger returns than those who start later. In India, a gold Auto-investment Plan does not need a huge investment. Depending on their financial situation, users may begin investing with a little sum each month. Gold Auto-investment Plans even enable young investors to begin investing from a young age.

Final Word

In recent years, India has seen a blockchain and cryptocurrency explosion, and it now ranks second in the world in terms of crypto usage. With Indian investors diversifying their portfolios into the digital space and the industry gaining popularity, Auto-invest Plan by OroPocket is an ideal pathway for individuals wishing to test the waters while earning returns on their investments. Read more about it in this blog:

OroPocket Introduces Auto-Invest Plan (AIP) with Tokenized GOLD & SILVER