Gold has always been a popular investment in India—but that hasn’t stopped myths from spreading. From thinking gold is only useful in a crisis to believing it’s just for the rich, misconceptions often keep investors from making informed decisions.
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Keyur Shah, CEO of Muthoot Exim, debunks some of the most common myths around gold investments—and explains why gold still deserves a place in your portfolio.
Myth 1: Gold is only for crisis times
Many believe that gold only performs well during economic turmoil. While it’s true that gold shines during uncertain times, Keyur Shah, CEO of Muthoot Exim, points out that it’s also a vital component of a balanced portfolio.
“Historically, gold has proved to be resilient and can be used for stability and inflation protection,” he says.
Gold acts as a cushion, helping protect wealth even when stock markets fluctuate.
Myth 2: All gold investments are the same
This is far from true. Investors today can choose from physical gold (bars, coins, jewelry), digital gold, gold ETFs, mutual funds, and gold stocks.
“Each has its own pros and cons,” says Shah. “Physical gold gives you direct ownership, but also needs proper storage. On the other hand, gold ETFs and digital gold offer convenience and ease of trading.”
Smart investors often blend these options depending on their goals.
Myth 3: Gold prices are too volatile
do move, but not as wildly as many think.
“Although gold prices do fluctuate, they tend to be less volatile than other assets such as stocks,” Shah clarifies.
“Gold has a long record of holding its value and has shown a steady upward trend over time.”
This makes it a reliable option for long-term wealth preservation.
Myth 4: Gold is old-fashioned
It’s common to hear that gold is outdated. However, recent trends prove otherwise.
“With growing volatility in international markets and rising inflation, gold continues to be a timely and compelling investment,” says Shah.
“In fact, gold outperformed many asset classes in 2024.”
Modern investment vehicles like digital gold and gold mutual funds have made it even more relevant for younger investors.
Myth 5: Gold investment is only for the rich
“The truth is, even small investors can benefit from gold,” Shah says.
“Options like gold ETFs and mutual funds make it easy to start investing with small amounts.”
Gone are the days when you needed to buy bulky jewellery to own gold.