Zebu blog

Tag: gold

  • Gold vs. Bonds: A Choice Between Comfort and Control

    When markets get rocky, investors don’t look for the most “profitable” asset—they look for the one that feels safe. In India, that usually comes down to two familiar names: gold and bonds.

    At first glance, they may seem like alternatives. But dig a little deeper, and you’ll realize—they speak to very different instincts. One is emotional. The other, structural. One shines in chaos. The other builds calm. At Zebu, we talk to thousands of investors across the country. And when volatility strikes, the most common question we hear is: “Where should I park my money now?“

    Let’s unpack the real difference between these two pillars of Indian investing—and what makes each one powerful in its own right.

    Gold: The Emotional Armor

    Gold in India isn’t just an asset. It’s woven into culture, rituals, even memories. But there’s more to its financial appeal:

    • You can touch and store it. That physical presence brings comfort.
    • It’s not tied to governments or institutions. No default risk, no counterparty stress.
    • It often rises when markets fall—a psychological hedge when panic sets in.

    But it has trade-offs too:

    • It doesn’t earn you any interest.
    • Costs like GST, making charges, and spreads eat into returns.
    • And physical storage has risks of its own.

    Still, for many, gold is less about return and more about reassurance.

    Bonds: The Blueprint for Stability

    Bonds don’t sparkle. But they offer something gold doesn’t—structure.

    • Regular interest income
    • Defined timelines and maturity
    • Predictable cash flow

    If gold feels like a safety net, bonds feel like a foundation. Especially when you’re planning for life goals—education, retirement, or just steady income. Of course, bonds aren’t without risk:

    • Rising interest rates reduce bond prices.
    • Some carry credit risk—especially corporate ones.
    • And they can underperform inflation if held short-term.

    But used smartly, bonds can stabilize a portfolio like little else.

    So Which One Wins?

    That depends on what you value.

    • If you want to guard against uncertainty and inflation—gold has your back.
    • If you’re building a plan around cash flow and capital preservation—bonds are your ally.
    • If you want both emotional comfort and logical structure? Use both.

    Many of our users at Zebu layer them. Bonds form the ground. Gold gives the cushion. They’re not rivals. They’re teammates.

    Use Tools, Not Gut Alone

    Modern investing platforms—ours included—offer tools to help you decide.

    • Risk profiling
    • Asset simulators
    • SIP planning in Gold ETFs and Bond Funds
    • Diversification models

    These aren’t just for advanced traders. They’re built so anyone can invest with clarity—not guesswork.

    Final Word: Safety Is Personal

    For some, safety looks like a locker of gold coins. For others, it’s a bond ladder maturing every year. For you, it might be both.

    Whatever you choose, make sure it suits your life, not just the markets.

    Because in the end, your peace of mind is the real return.

    Disclaimer

    This blog does not provide investment advice; it is merely meant to be informative. Zebu disclaims all liability for financial decisions based on this content and makes no guarantees regarding accuracy or returns. A certified financial advisor should always be consulted before making an investment.

    FAQs

    1. Is it better to invest in gold or bonds?

      Gold vs gold bond depends on your goals. Physical gold offers liquidity and hedge against inflation, while bonds provide regular interest and more predictable returns.

    2. What are the risks of investing in bonds?

      Bonds, including sovereign gold bond vs digital gold options, carry risks like interest rate changes, credit risk, and inflation eroding returns.

    3. What are the disadvantages of buying gold bonds?

      Gold bonds may have lower liquidity than physical gold and limited flexibility if you need quick cash.

    4. Can I invest in both gold and bonds for better returns?

      Yes, combining gold and bonds can balance risk and returns while diversifying your portfolio.

    5. Which is safer for my savings, gold or bonds?

      Bonds are generally safer for stable returns, while gold protects against inflation but can be volatile in price.

  • Multiple Asset Classes That Can Form Your Financial Goals

    Since March 2020, when the stock markets plummeted, asset values have rebounded at a similar rate. What develops is a type of agreement that, regardless of short-term blips, equities do well in the long run. While the volatility persisted into 2021, it also demonstrated that the stock market is not just a home for the bulls and that prices do fall.

    So what moves up the prices of stocks? Corporate earnings and growth prospects in the years ahead are what ultimately drive equities asset prices. Current valuations appear to be on the high side, and many companies’ input costs are under pressure. However, truly valuable companies come with good promoters and a sound business fundamental and are always good investments in the long run.

    Here is how you can diversify your investment across multiple asset classes to build over wealth over a long period of time.

    Before we start…

    Before investing a lump sum in your portfolio, make sure to have an emergency fund that covers the basic health and life risks for your family. This way, your family can stay financially secure in any emergency. It is also important to apply and obtain enough health insurance for every member of your family. You can also choose a term insurance plan that covers at least 15 times your annual income and reassess it every five years or if new financial obligations arise.

    Another thing to keep in mind is to choose the right investment partner for your financial objectives. Zebu is one of the leading share market brokers for online share trading. Get started in a few minutes with us to own one of the best trading accounts in India.

    Fixed Incomes

    The fixed income asset class, which is the most popular among Indians, is one of the most trusted and oldest types of investments. Two examples are fixed deposits and public provident funds (PPF). Is this, however, a sound investment? You’re simply allowing the bank to borrow money from you under the terms of capital protection, pre-agreed returns, and liquidity.

    You will not lose money if you invest in fixed income asset types because they have no risks. Furthermore, you receive consistent profits as promised at the time of investment. Fixed income plans may offer yields of 7% to 8%, but they are hardly inflation-beating rates. Fixed income plans only provide security and are subject to STCG or LTCG depending on the term.

    SIPs

    Start SIPs (systematic investment plans) in a few equities mutual funds with a good mix of large, mid, and small-cap schemes. When you have a large sum of money to invest, put it into your current folios. Also, take advantage of market dips to add extra shares to your roster. Importantly, diversify among stock, debt, and gold to maintain asset allocation and avoid switching from one asset or scheme to another based on short-term performance.

    You can put funds in a liquid fund and migrate them to equity schemes at periodic intervals using the STP (systematic transfer plan) technique. These strategies assist in taking a managed approach and regularly subjecting your funds to the prospects of the equity market for a better risk-adjusted return. Depending on your risk profile and the general economic climate, a portion of your portfolio can also be invested in sector-specific funds such as pharma and IT funds.

    Mutual funds

    A mutual fund is managed by an analyst or fund manager who handles the money from multiple investors and invests it in stocks, bonds, and short-term debt. The mutual fund comprises stocks from various market segments that the fund manager deems well-performing. And shares of the mutual funds are purchased by investors. With every share you own, it is a representation of the fund’s ownership and revenue. Mutual funds are seen as a relatively risk-free tool for investors to diversify their portfolios.

    Debt funds

    Debt funds are mutual fund schemes that are focused on fixed income instruments such as government and corporate bonds. In these finds, your capital is relatively safe and you also earn a small interest on it. Debt funds now include floating rate bond funds. These are debt instruments whose interest rates vary with the value of the underlying instruments. These can be chosen by investors for goals that are at least three years away.

    Gold

    Over the last year, gold has remained nearly unchanged. However, in light of growing inflation, one can consider a 5-10% exposure in their portfolio. You could invest in gold using sovereign gold bonds rather than physical gold.

    Depending on your risk appetite and capital, you can tap into a sea of investment options that are right for you. At Zebu, we complement your financial goals with the best trading account we can give you. We are one of the leading share market brokers in the country and come with a wide range of products and services to help you make the right financial and trading decisions.

    We give you the ideal platform for online share market trading as well for the risk-taking individuals. To know more about our products and services that will help you maximise your returns across all asset classes, please get in touch with us now.