Get Your Fund Facts Right

Investments cannot be classified as good or bad. Its just that, there is no one-size-fits-all approach to it. Something, which might have earned you a fortune, might not suit your friends. So, instead of listening to others, it is suggested that you make your own judgment. We have listed 20 products, which you should think twice about before parking your money.

- Sanchari Ghosh And Suyash Desai

Real Estate

You buy a house for `two crore hoping that in the next ten years it will grow tenfold. But after paying offthe EMI, taxes, renovation and maintenance, the net profit in hand is usually much smaller than you expect. Buying a house makes sense if you are living on rent. However, it should not be viewed as a long-term investment. Besides, as contrary to popular belief, real estate gives you only about 10 to 12 per cent return, unless you are super lucky.

Precious Metal

Pulling offa Scrooge McDuck and dipping into a pool of gold coins might be an ultimate fancy, but gold and silver sitting pretty in your vault does not add value to your investment. On the other hand, if the same fund is invested in human capital or a lucrative business model, it can create immense wealth. The entire concept of capitalism is based on this theory. However, there is a good side of investing in physical gold too. It can be looked at as a hedge insurance that can save you during times of political or economic unrest. But other times, it is a lousy form of investment.

Experts Speak:

It acts as hedge insurance during political or economic unrest. Other times it’s a lousy investment

Precious Stones

If you are about to spend a fortune on a Tiffany’s rock, think through before it’s too late. Popularity of precious stones picked up 15 years back as sleek jewellery became a rage among youngsters. But it is on a downturn again. And re-sale value of diamond or other precious stones is very low. Unlike precious metals whose price might shoot up during time of distress, precious stones show no such trends.

Expert Speaks: Bad investment

Cryptocurrencies