Gold or Fractional Real Estate: Where should you invest this Diwali?


The days leading up to Navratri to the end of Diwali celebrations are the time the Indian market gives a good performance.

The Indian market is in high hopes after a high performance in the Navratri season. Now all eyes are set for Diwali. Even though there might be many investment options, two stand out as an all-around favourite. Gold and real estate.

Gold is a traditional and most trusted form of investment. Except in a few exceptional cases, gold has never lost its value in a manner real estate or stock does.

All imported items are purchased based on dollars, gold price depends on the INR-USD exchange rate, with many other factors. Whenever the rupee devalues, inflation rises, and gold price increases, thus making it a good hedge against inflation.

The current gold costs are nearly at a similar level as they were a decade ago, which asks the question of whether it is a good form of storing wealth. Yes, it is well protected, and since it works conversely with the market, it is adaptable and is fluid.

But an investor won’t be able to accomplish extraordinary returns regardless of occasional highs. And also, it cannot be a wealth-generating asset, especially for one’s retirement days.

Another sector one could look at is real estate. It showed great resilience during the pandemic period. HNIs prefer this sector since commercial and real estate markets are showing good signs of recovery. But it has its problems.

Before entering and investing in the market, one needs good knowledge about it. It also depends on many factors and can be tricky for the common investor.

It also requires lots of money, to begin with, to spend on matters from loans to capital and maintenance. This is why most do not prefer real estate as a primary investment.

Now one can invest in real estate with half the fuss that deterred the investors to the real estate in the first place. It opens doors to investing in properties that have been avoided in the past because of high entry barriers.

One can invest in a high-end property with a minimum investment amount. These are the kind of properties that give high returns with minimal volatility and are also tangible assets. It is called Fractional Ownership.

In this system, one co-invest an affordable amount with others supervised by a group of professionals. It makes a complicated real estate market simple as a stock market.

Fractional Ownership settles for liquidity, by permitting a financial backer to sell their portions privately or in public.

Many have overcome the apprehension for this and it is a big hit in both the international and domestic market.

But one should understand just like in any real estate investment it takes time to generate income, and the secondary sales will be based on supply and demand forces.

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