Which is wiser now? (a) Investing in equities. (b) Investing in Mutual fund (c) Investing in Gold?

It's great to see you ask a very relevant question, considering our current macro-economic situation! Inflation, having shot up dramatically ensures that whatever savings we may have in FDs and other debt instruments are not going to be enough to ensure a secure financial future!. So what are the alternatives?

1. Gold - Usually in the Indian family, Gold is always accumulated through gifts received, purchased at festivals like Diwali, Akshaya Tritiya etc. So some portion of your portfolio ( if you are not married, someday when you do, your wife will come and complement that part of your portfolio:-)), already has a good Gold component. I would advise not to add to that, because at best, Gold is only a hedge against inflation, it keeps pace with inflation, it doesn't beat it by a handsome margin!
And to multiply your money, you definitely need to beat inflation! So we need better options!

2. Real Estate - This is a much better bet and over the longer term probably the best bet, after equities. And if you are lucky to get into an area that later has much larger commercial implications, (such as near an International airport, say), you can even hit a goldmine and better the long term equity market rates

3. Equities/Mutual Funds - For the long term, there is no better trusted friend than investing in select equities to handsomely beat inflation. The best part is in India, the long term returns are tax free. Of course you need to do the homework to invest with only funds that you don't need for say the nest 3-5 years at the least, stay invested in the best companies and not go after latest fads (like Real estate companies etc which can have dramatic change in fortunes with rising interest rates and inflation). Companies like ITC, HDFC, HUL, Ranbaxy, CIpla, Infosys, Satyam have given over 30-50% compounded anual returns over the last 15 years. Read about them here at the excellent Wealth Creation studies compiled by Motilal Oswal at http://www.motilaloswal.com/Retail/RetailContents.aspx?ReportID=DE09E872-F1C9-44A5-A990-0E11F61CBE6B

Similarly there are some great 5-star rated MFs like HDFC Taxsaver, Reliance Growth, Magnum Contra, HDFC Prudence which have given over 20-40% compounded annual returns over the last 10-15 years! Read about the top rated funds at http://www.valueresearchonline.com/toprated.asp
Click on a fund name, read its Analysis, check its snapshot, performance track, etc.

But before you do all that, I will urge you to first consider this excellent article on the power of compounding at http://www.valueresearchonline.com/story/h2_storyView.asp?str=4007

Invest no more than 2% of your portfolio in gold.
If you know little about invesing.... your best bet is Mutual Funds.

No matter what you do... you won't be successful if you don't have a good "asset allocation".........

BTW: The two worst places to invest your money with are;
Banks
Insurance Companies

a investing in a equities

if u ready for some good profits with reasonable risks then equity is good for u..........

Else, go for mutual fund....

u can also do 1 thing.....divide ur investing amount into 60:40,
60% on mutual funds and 40% on equity

Percentage wise Equities delivery based transactions give better returns if the investments are not from borrowed funds.
Mutual funds are for those who do not desire to be bothered by the formalities in Share Market. After Mutual Fund managers have the only choice to invest in Share Market.
Gold investment is for those who have plans to invest for 15 / 20 years. For marriage of a daughter - parents do invest in gold not for the sake of near future profits but for planning and utilisation at the appropriate period.

A striking good balance in all. There is a well-known saying 'Do not put all eggs in the same basket', you know.

Frankly, investing in equity, mutual fund and gold are all good ideas. There is no urgency with respect to time; that is there is no "now or never" when it comes to investment and its management.

Depending on your short term and long term investment objective, your risk taking capability and profile and your knowledge of investment management; you may consider distributing your investable resources amongst these three (and more investment avenues). For instance, for the long term investor real estate maybe an option.

However, if your question pertains to shifting your investment resources from one asset class to the other; then we are taking in terms of a portfolio upgrade within your equity holdings and across the other asset classes in which you hold investments.

Further, you may also take a look at your present asset allocation. And depending on your larger objectives you may consider rebalancing your resources across the presently held assets and new assets you may consider to include in your portfolio.

Happy investing,

Akash
http://www.narachinvestment.com

If you have good risk taking appetite then go for equity, otherwise go for Mutual funds.

A lot of gold bugs here. Gold is a risky investment. Had you bought some in the late 80's at over $800 an ounce it would have taken you 20 years to get your money back. In the meantime you could have tripled or quadrupled your money in stocks or stock mutual funds. Over the long haul stocks have always performed better than any other asset class. Especially when bought after a significant drop in price like today. Good luck.

For long term 2 to 3 years invest in equity and MFs.
For shorter period invest in Gold.

Long term investment in equities or investment in gold.

depends on ur risk taking abilitity and timeframe of your investment

Get a new first mortgage and take cash back at closing There are changing rules for how high of an LTV ("or loan to value") of your property is allowed. Next time you sell, you should never put the entire profit from your home into the next ome. Those are dollars you can declare on you tax return and pay zero taxes. Take much of those 100% dollars and invest them in a tax-advantaged accounts for your wealth-building and to make your next-egg cushion much more safe for life's events...college, weddings, unexpected job loss, illness, retirement, etc.

I learned this from Marian Snow, financial analyst and bestselling author of "Stop Sitting on Your Assets." There's a lot to learn from her.

If you are long term investor then you will got good profit
start from mutual fund
http://shaktibanna.blogspot.com/2008/07/whatismutualfund.html
then jump in share market
http://shaktibanna.blogspot.com/2008/06/earn-2000-3000-per-month-in-share.html

hey ... gold is always the safest option man ..... go for it and you will never regret atleast this decision when you grow old !!

I say Gold, because it is the most reliable and its value has always increased.

Investment in the policies of life insurance companies.

"A" when the market is ripe and "C" when the market is not ripe. I do not and will not invest in "B", they do not provide a quick enough return on my investments and I sure don't want to tie up a substantial investment in something that only gives me a 3% return for a whole year. It may be safer for most people, but not for me, I enjoy making investments in stocks, sort of like playing high-stakes poker, which is something else I love to do and am pretty good at it, but investing in Gold and precious metals is also a sound investment, so is coal, and solar energy, especially when the price of oil increases. I follow my gut and so far, I am doing okay, no complaints.

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