Showing posts with label Finance. Show all posts
Showing posts with label Finance. Show all posts

28 September 2025

Gen Z and Personal Finance: How the New Generation Navigates Modern Money Challenges

 

Gen Z and Personal Finance

A Generation Redefining Money

Every generation has its own relationship with money. Baby Boomers leaned on pensions, Gen X mastered credit, and Millennials embraced side hustles. But now, Gen Z and personal finance are rewriting the rules entirely. Born between the mid-1990s and early 2010s, Gen Zers are entering adulthood during an era of soaring inflation, digital currencies, AI-driven jobs, and uncertain economies.

Unlike their predecessors, they grew up with smartphones in hand and financial crises in the headlines. Their financial playbook? Digital, cautious, yet ambitious.

Gen Z’s Money Mindset

Gen Zers are cautious yet confident. Having seen their parents struggle during the 2008 recession and later the COVID-19 downturn, they value financial security. Yet, they also crave financial freedom—they don’t just want to survive; they want to thrive.

  • 70% of Gen Zers believe financial stability is their top life goal.

  • Many prefer experiences over material possessions but want money to fund those experiences.

Digital-First Banking and Payments

Cash is nearly irrelevant for this generation. From UPI in India to Venmo in the U.S., Gen Z prefers instant, transparent, app-based financial solutions.

  • Mobile banking apps are their default.

  • UPI, PayPal, Apple Pay, Google Pay dominate their transactions.

  • Neo-banks and digital wallets are replacing brick-and-mortar banking for them.

Student Loans, Debt, and Caution

One of Gen Z’s biggest financial hurdles is education debt. In the U.S., student loan burdens shape their cautious spending. In India, it’s the rising cost of higher education and skill-based courses.

  • They are debt-averse, unlike Millennials who embraced credit cards freely.

  • “Buy Now, Pay Later” (BNPL) services tempt them, but many are aware of the debt trap.

  • Gen Z favors prepaid cards, BNPL alternatives, and controlled credit use.

Saving Habits and Emergency Funds

Interestingly, Gen Z saves earlier than Millennials did. Many open savings accounts and SIPs (Systematic Investment Plans) in their early 20s.

  • They prioritize emergency funds after witnessing COVID-19’s job losses.

  • Budgeting apps like YNAB, Walnut, and Mint are popular tools.

Investing the Gen Z Way

When it comes to investing, Gen Z is risk-aware but not risk-averse.

  • They love stocks, ETFs, and index funds, often using zero-commission apps like Robinhood, Zerodha, or Groww.

  • Cryptocurrencies and NFTs attracted them initially, but recent market crashes taught caution.

  • Many follow financial influencers on Instagram, YouTube, and TikTok for money advice—though not always reliable.

Mental Health and Money Stress

For Gen Z, money is not just financial—it’s emotional. Surveys show they are more open about money stress and burnout. Rising living costs, climate concerns, and job instability shape their anxieties.

  • They prefer jobs with work-life balance even if salaries are lower.

  • They link financial health with mental health more openly than past generations.

The Role of Side Hustles

Gen Z is the side hustle generation. From freelancing and gig work to monetizing hobbies online, they refuse to depend solely on 9-to-5 jobs.

Platforms like Fiverr, Upwork, and YouTube are financial lifelines. They see multiple income streams as financial security.

Gen Z and Financial Literacy

Unlike older generations, Gen Z wants to be financially literate early. They consume finance content on social media, podcasts, and short-form videos.

However, misinformation is a risk—many fall into traps from “get rich quick” gurus. Schools and colleges are slowly adding financial literacy modules, but there’s a long way to go.

Global vs. Indian Context

  • In the U.S., Gen Z is shaped by student loans, gig economy work, and tech-driven investing.

  • In India, Gen Z is influenced by UPI, stock trading apps, and growing middle-class aspirations. Many invest in mutual funds early but remain cautious with debt.

Challenges Ahead

Despite their adaptability, Gen Z faces hurdles:

  • Inflation eating into savings.

  • Housing affordability crisis in big cities.

  • Retirement planning often overlooked in their 20s.

  • Overexposure to risky digital assets.

Conclusion: The Future of Gen Z and Personal Finance

Gen Z is not just adapting to modern finance—they’re reshaping it. With apps as wallets, influencers as advisors, and side hustles as safety nets, they’re rewriting money rules.

Yes, challenges like debt, misinformation, and inflation remain, but their digital fluency and early focus on financial literacy give them an edge. If past generations dreamed of financial freedom, Gen Z is actively building it—one UPI payment, one SIP, and one side hustle at a time.








19 September 2025

Credit Scores: Why It Should Be Part of India’s Financial Literacy Curriculum

 

when did credit scores start

The Untold Power of a Credit Score

For most young Indians, credit score is a mysterious number that only becomes important when they apply for their first loan or credit card. By then, it’s often too late—they may already have damaged their financial credibility without even realizing it. Imagine if schools and colleges taught students about the importance of maintaining a healthy credit score, much like they teach mathematics or science. The result? A financially literate generation capable of making informed credit decisions, avoiding debt traps, and building wealth responsibly.

This is why integrating credit scores into India’s financial literacy curriculum is not just necessary - it’s urgent.

What Is a Credit Score and Why Does It Matter? Read more here

A credit score is a three-digit number that reflects an individual’s creditworthiness based on their repayment history, outstanding debts, credit usage, and overall financial behavior. In India, agencies like CIBIL, Equifax, Experian, and CRIF High Mark generate these scores, usually ranging between 300 and 900.

  • 750 and above → Excellent credit score, easier access to loans and credit cards at lower interest rates.

  • 600–749 → Fair credit score, higher scrutiny and moderate interest rates.

  • Below 600 → Poor credit score, limited access to formal credit, often rejection of applications.

In essence, a good credit score is a passport to financial opportunities.

Factors that Influence Credit Score

  1. Repayment history (35%) – Paying EMIs and credit card bills on time

  2. Credit utilization ratio (30%) – Using less than 30% of the credit limit

  3. Length of credit history (15%) – Older accounts boost credibility

  4. Credit mix (10%) – A healthy balance of secured (home loan) and unsecured (credit card) loans

  5. New credit inquiries (10%) – Too many loan/credit card applications hurt the score

A score above 750 is considered excellent, while anything below 600 signals poor creditworthiness.

Why Credit Scores Matter in India

India is witnessing rapid financial inclusion. With digital lending apps, credit cards, and EMIs becoming mainstream, credit score awareness has never been more critical.

  • Loan approvals: Banks and NBFCs heavily rely on credit scores before sanctioning loans.

  • Interest rates: Borrowers with higher scores often receive lower rates.

  • Job applications: Some employers, especially in banking, review credit history as part of background checks.

  • Renting a house: Landlords in metros like Mumbai and Bengaluru increasingly ask for credit reports.

Yet, a 2023 survey by TransUnion CIBIL found that over 70% of young Indians had little to no knowledge of their credit scores.

The Current Gap in India’s Financial Literacy

India has made strides in education, but financial literacy remains shockingly low.

  • According to RBI data, less than 27% of Indians are financially literate.

  • Among youth (ages 18–25), awareness about credit scores is under 20%.

  • Rural areas are worst affected, where reliance on informal lending still dominates.

This lack of awareness creates a vicious cycle: young people fall into debt traps, fail to repay, damage their credit scores, and then find themselves excluded from formal banking.

Why Credit Scores Should Be Taught in Schools and Colleges

1. Building Early Awareness

By teaching students how credit scores work, India can raise a generation that understands the cost of financial negligence. Instead of defaulting on their first loan or credit card, they’ll start their financial journey on the right note.

2. Empowering Youth with Access to Formal Credit

Currently, millions of Indians rely on informal moneylenders who charge exorbitant interest rates. Credit score education will encourage responsible borrowing from banks and NBFCs, reducing dependence on informal sources.

3. Preventing Digital Debt Traps

The rise of Buy Now Pay Later (BNPL) schemes, instant loans, and fintech apps has made young Indians vulnerable. Credit score awareness will help them evaluate these offers more critically.

4. Boosting Economic Growth

A financially literate population means healthier banking systems, better repayment rates, and stronger capital markets. Widespread credit score awareness can significantly enhance India’s financial stability.

Global Lessons: What Other Countries Are Doing

India is not alone in grappling with financial literacy challenges. Several countries have already taken steps to integrate credit education into schools:

  • United States: As of 2023, 24 U.S. states mandate financial literacy courses in high school, covering credit scores and debt management.

  • UK: Personal finance, including debt and credit ratings, is taught as part of citizenship education.

  • Australia: The national financial literacy strategy emphasizes credit reports and responsible borrowing.

India can adopt similar approaches, localized for its unique financial landscape.

Case Study: Riya’s Two Futures

Let's understand credit score and its importance with a case study.

Scenario 1: Without Credit Score Literacy

Riya, a 23-year-old engineer in Bengaluru, applies for a credit card, maxes it out, and delays payments. Within six months, her credit score drops to 580. Later, when she applies for a home loan, the bank rejects her application or offers an interest rate 3% higher than average.

Scenario 2: With Credit Score Literacy

Riya learns about credit scores in college. She keeps her utilization below 30%, pays bills on time, and checks her CIBIL report yearly. Within two years, her score rises to 790. She secures a home loan easily, saves lakhs in interest, and enjoys premium credit offers.

Lesson: Early credit education directly impacts lifelong financial security.

The Role of Institutions in Credit Score Education

  1. Schools and Colleges

    • Introduce personal finance modules from Class 9 onwards.

    • Organize workshops on credit reports and budgeting.

  2. Banks and Credit Bureaus

    • Partner with universities for awareness drives.

    • Provide free credit score checks for students.

  3. Government & Regulators

    • RBI and SEBI can create nationwide financial literacy campaigns.

    • Integrate credit awareness into programs like PM Jan Dhan Yojana.

Challenges to Implementation

  • Teacher Preparedness: Many educators themselves lack credit knowledge.

  • Curriculum Overload: Adding new subjects may face resistance.

  • Digital Divide: Rural areas may struggle with accessibility.

Solutions:

  • Train teachers with help from banks and NGOs.

  • Use gamified mobile apps to teach credit scores.

  • Implement pilot programs in select schools before scaling nationwide.

A Critical Look: Risks of Overemphasis

While teaching credit scores is crucial, policymakers must ensure it doesn’t create undue pressure on students. A credit score should be presented as a financial tool, not as another exam-like number.

Moreover, India must guard against over-reliance on scoring systems that may exclude low-income groups who lack access to formal banking. Hence, literacy efforts must be balanced with reforms in inclusive lending.

Conclusion: A Credit-Ready Generation for India’s Future

India is set to become a $5 trillion economy, but true growth requires financially empowered citizens. Credit score education is not just about numbers—it’s about instilling responsibility, opening opportunities, and building resilience.

By integrating credit scores into the financial literacy curriculum, India can raise a generation that understands money, avoids debt traps, and uses credit as a tool for progress rather than a burden.

A nation that understands its credit scores is a nation ready to unlock its full economic potential.

Quick FAQ

Q1. What is a good credit score in India?

A score of 750 and above is considered excellent.

Q2. Can students start building a credit score?

Yes. Even a student credit card or small EMI payments can help.

Q3. Who checks my credit score?

Banks, NBFCs, employers, and sometimes landlords.

Q4. Is credit score the only factor for loan approval?

No, income, employment, and existing debts also matter.







10 September 2025

Everything You Need to Know About Credit Scores

credit score

What is a Credit Score - An Introduction

Have you ever felt like your whole financial life depends on a number you don’t fully understand? That’s what a credit score often feels like. One day, you’re applying for a new credit card or a home loan, and suddenly the banker says: “We’ll need to check your score.”

In that moment, your dreams, your discipline, and even your mistakes—all collapse into a three-digit number.

But what does that number really mean? Who decides it? Why does it matter so much? And how can you make sure it works for you and not against you?

In this deep-dive guide, we’ll explore:

  • The history of credit scores (and how they came into being)

  • How they’re calculated

  • Global systems of credit scoring

  • Myths and misconceptions

  • Practical steps to improve your score

  • The future of financial trust

  • A real-life case study to make it relatable

By the end, you’ll not only understand credit scores but also feel more in control of yours.

Credit Score - Definition

At its simplest, a credit score is a numerical snapshot of your financial trustworthiness.

  • In most countries, it ranges between 300 to 850 (U.S. FICO) or 300 to 900 (India’s CIBIL).

  • A higher score means you’re seen as a low-risk borrower.

  • A lower score means lenders see you as higher-risk, which often translates to rejections or high-interest rates.

  • Used For: Loan approvals, credit card issuance, insurance premiums, rental agreements, and even some job screenings.

Think of it as your financial passport. It doesn’t just open doors to money - it also influences opportunities in housing, jobs, and even lifestyle choices.

A Brief History of Credit Scores

Before the modern credit score, banks used personal judgment, character references, and even gossip to decide if you deserved a loan. Imagine your financial future being decided by a banker’s opinion of your reputation!

  • Before the 1950s: Credit decisions were subjective, often based on personal relationships, gender, or race. Banks relied on reputation, which led to discrimination.

  • 1956 – The Birth of FICO: Engineers Bill Fair and Earl Isaac introduced a data-driven approach to credit scoring. Their Fair, Isaac, and Company (FICO) score became the industry standard.

  • 1989 – Modern Credit Scoring: The first general-purpose FICO score launched, revolutionizing lending with objectivity.

  • 2000s – Global Spread: Countries like India (with CIBIL in 2000) and others adopted credit scoring systems.

  • Today: Credit scores are digital fingerprints—shaping access not just to money, but to opportunities in housing, insurance, and beyond.

From gossip to algorithms, the evolution of credit scores mirrors society’s growing dependence on data-driven trust.

How Are Credit Scores Calculated?

Credit scores are calculated using complex algorithms, but the broad categories are clear. For FICO:

  1. Payment History (35%) – Do you pay bills on time?

  2. Credit Utilization (30%) – How much of your available credit are you using?

  3. Length of Credit History (15%) – The longer, the better.

  4. Credit Mix (10%) – A healthy blend of loans, cards, and mortgages helps.

  5. New Credit Inquiries (10%) – Too many applications suggest desperation.

In India, CIBIL and other RBI-approved bureaus follow a similar model, though local lending culture also influences decisions.

Types of Credit Scores

There isn’t one “universal” credit score. Here’s a breakdown:

Region       Credit Score Model      Range Notes
U.S.       FICO      300–850                Industry standard
U.S.       VantageScore      300–850                Rival model, often used in free reports
India       CIBIL      300–900                Above 750 is good
UK       Experian      0–999                Higher = better
Germany       Schufa      0–100%                Expressed as a probability score
China       Social Credit + PBOC      Variable                Mix of finance & behavior

This shows that while the concept is global, the systems are cultural.

Why Credit Scores Matter in Everyday Life

Your score influences:

  • Loans & Mortgages – A difference of 100 points could change your interest rate dramatically.

  • Credit Cards – Higher scores mean better cards, lower rates, and higher limits.

  • Renting a Home – Landlords often check scores before leasing.

  • Employment – Some employers (especially finance, defense, or government) check scores.

  • Insurance Premiums – Bad credit = higher premiums in some countries.

In short, your credit score quietly shapes your economic freedom.

The Dark Side of Credit Scores

While credit scores provide efficiency, they also have drawbacks:

  • Inequality Reinforcement – People from poorer backgrounds often start with no score, making upward mobility harder.

  • Errors – According to a U.S. FTC study, 1 in 5 reports has significant errors.

  • Over-Reliance – A single missed bill can hurt you for years.

  • Subjectivity in Emerging Markets – In India, informal lenders may still distrust even good scores.

This raises a deep question: should trust be reduced to numbers?

Global Credit Score Systems

  • India – Four RBI-licensed bureaus: CIBIL, Experian, Equifax, CRIF Highmark.

  • China – Sesame Credit and emerging state-linked systems.

  • U.S. – FICO & VantageScore dominate.

  • Europe – More fragmented but Schufa, Experian, and local systems lead.

  • Africa – Mobile money companies are pioneering new scoring models (e.g., M-Pesa-based).

  • Australia & Canada: Equifax & TransUnion with local variations.

How to Improve Your Credit Score

Here are practical, time-tested ways:

  1. Pay bills on time. Even one late payment can drag your score.

  2. Keep utilization low. Use less than 30% of your credit limit.

  3. Don’t apply for too many cards. Space out applications.

  4. Keep old accounts open. Longer history = stronger trust.

  5. Check your reports annually. Dispute errors promptly.

Common Myths About Credit Scores

  • “Checking my own score lowers it.” (Soft checks don’t affect scores.)

  •  “Closing old cards improves my score.” (Actually lowers history length.)

  •  “Carrying debt helps.” (Wrong—paying off balances helps most.)

  •  “Credit scores are only for the rich.” (They’re crucial for everyone.)

Consistency is key - credit repair is a marathon, not a sprint.

The Future of Credit Scoring

Trends to watch:

  • AI-powered models – Beyond FICO, analyzing behaviors like rent, subscriptions, and utilities.

  • Open Banking – Secure data-sharing for fairer scores.

  • Blockchain IDs – Decentralized, portable credit reputations.

  • Alternative Lending in India & Africa – Using smartphone and UPI data to score borrowers.

The future of scoring could be more inclusive—or more invasive.

Case Study – From Bad Credit to Financial Freedom

Meet Ananya, a 29-year-old software engineer in Bangalore.

  • The Problem: After racking up ₹3 lakh in unpaid credit card debt, her CIBIL score dropped to 580. She was denied a home loan despite a good salary.

  • Turning Point: She began with a strict repayment plan—paying off high-interest debt first. She also used a secured credit card with a ₹20,000 deposit to rebuild her credit.

  • Actions Taken:

    • Paid bills on time every month.

    • Reduced utilization from 85% to 20%.

    • Kept her oldest account open.

    • Monitored her CIBIL report for errors.

  • The Outcome: Within 18 months, Ananya’s score rose to 755. She qualified for a home loan at a lower interest rate, saving thousands of rupees in the long run.

This case study shows how discipline, awareness, and persistence can transform financial reality.

Credit Scores and Human Identity

At the heart of the debate lies a philosophical question:

  • Are we more than our numbers?

  • Should a three-digit score define our worth?

Credit scores are useful, but they risk reducing human potential to past behavior. For society, the challenge is to balance efficiency with fairness.

The Future of Credit Scores

The future may redefine how we measure trust:

  • Alternative Data: Rent, utility payments, even subscription payments may influence scores.

  • AI & Machine Learning: Personalized scoring models.

  • Crypto & Blockchain: Decentralized identity systems.

  • Social Credit Systems: As seen in China, blending financial and social behavior.

The question remains: will future credit scores empower or control individuals?

Conclusion

Credit scores began as a way to standardize trust. Over time, they have become powerful gatekeepers of opportunity. They influence whether you can buy a house, rent an apartment, or even secure a job.

The good news: scores are not fixed. With awareness, discipline, and strategy, anyone can build or repair their credit history.

The big picture: governments and banks must ensure these systems do not perpetuate inequality but instead create pathways to financial inclusion.

After all, you are not just a number—you’re a story of potential.

Treat your credit score like your health. Monitor it, nurture it, and make choices today that will benefit you tomorrow.

Read about Global Gold Price Momentum and its Future Here.







10 August 2025

Gold Price Madness: Why Gold Is Set to Shatter Records

Gold Price


Why Gold Still Rules the World

From ancient civilizations who revered it as divine, to central banks stockpiling it as insurance—gold has always had a unique allure. It’s not just a shiny metal. It’s an emotional hedge, a financial shield, and a timeless asset. With the world becoming more uncertain, many are asking: Is gold still worth it? Will its price continue to rise? Or is the glitter fading?

Why Gold Is Set to Shatter Records

Gold is more than a yellow metal in India—it’s memory, safety, culture, and wealth. In 2025, gold skyrocketed nearly 28%, reaching close to ₹1 lakh per 10 grams—a dramatic surge unseen in years. Yet behind the glitter lies uncertainty: will it climb higher, crash back, or consolidate?

This article looks into the following:

  • Gold Market
  • Gold’s Historical Role
  • Why gold soared in 2025
  • What analysts predict through 2030
  • How demand—especially in India—has shifted
  • Smart investment vehicles and strategies
  • Risks to watch in the golden storyline

Gold Through the Ages

Gold has survived empires, revolutions, and recessions. Its journey includes:

  • Ancient Egypt: Gold was seen as the "flesh of the gods."
  • Roman Empire: Used as currency, symbolizing stability.
  • Bretton Woods (1944): Tied the global monetary system to gold.
  • 1971: U.S. ends gold standard—gold starts floating freely.

Despite policy shifts, gold’s symbolic and monetary value has endured.

How Gold Prices Work: Key Influencers Today

Gold isn’t just about demand and supply. Several macro factors impact its price:

1. Inflation and Currency Devaluation

When inflation rises or currencies lose value, people turn to gold. It's perceived as a "real" asset unaffected by printing presses.

2. Geopolitical Tensions

Wars, sanctions, and political instability make investors nervous. Gold is seen as a safe haven, driving demand.

3. Central Bank Actions

Governments globally (especially in Asia) are buying more gold to hedge against USD risk.

4. Interest Rates

Gold has no yield. So when interest rates rise, gold demand can drop. But during recessionary or uncertain times, gold tends to regain favor.

5. Dollar Strength

A strong dollar usually weakens gold prices, and vice versa.

Gold Price Trends: What the Data Tells Us

  • 2020-2021: COVID-19 pushed gold to record highs (~₹56,000/10g in India)
  • 2022-2023: Gold remained resilient, closing around ₹60,000 amid rate hikes
  • 2024: Price rallied further due to inflation fears, geopolitical tension (Russia-Ukraine, Middle East)

As of August 2025, gold hovers between ₹72,000–₹75,000/10g in India, and around $2,300–$2,400/oz globally.

Gold Price Explosion: What’s Driving the Surge?

Global Safe-Haven Demand

A slump in U.S. equities, rising tariffs, and geopolitical tensions pushed investors toward gold. In early August 2025, gold hit $3,400 per ounce after equity markets fell sharply, signaling renewed hedge demand. 

  • Industry giants like Goldman Sachs and UBS have raised forecasts: Goldman sees gold reaching $3,650–$3,950/oz by end-2025; UBS is eyeing $2,900–$3,200/oz by 2026.

Indian Realities: Prices Near ₹1 Lakh

MCX futures soared to ₹100,555 per 10 g by July 2025 before a brief dip below ₹98,500 showing investor caution. Analysts flag consolidation in the near‑term but expect further swings as macro cues evolve.

Decline in Jewellery Demand, Rise in ETFs

As prices rose, jewellery enthusiasts pulled back. India’s gold demand is projected to hit a five‑year low in 2025 (600–700 tonnes vs 802.8 tonnes in 2024), driven by falling jewellery off‑take—even as investment demand rose 7% in Q2.

Why Gold Might Dip: Is the Bull Run Overdone?

Profit Booking & Volatility

Profit‑taking has driven gold down ~₹309 per 10 g on MCX in a couple of days, fuelling speculation of further downside. Writers warn global cues and interest rate policies suggest caution; gold may stay under ₹1 lakh for now 

Jewellery Sales Drop Dramatically

Sky‑high prices prompted many in India to cancel wedding bookings or sell old ornaments instead of buying fresh—further dampening jewellery demand.

Expert Predictions: How High Could Gold Go?

India: ₹1.10 Lakh by Mid‑2026?

ET and other outlets suggest gold could breach ₹1.10 lakh per 10 g within a year, driven by geopolitical uncertainty and global ETF inflows

Global Forecasts

·       Goldman Sachs: $3,650–$3,950/oz by end-2025; if recession intensifies, gold may hit $3,880/oz.

·       UBS: Maintains an $2,900/oz target for 2026, and sees potential to $3,200 if macro risk persists.

Longer-Term Outlook to 2030

Models suggest average annual growth of 8% (stable scenario) or up to 15% (bullish) through 2030-putting 24 K gold around ₹1.25–₹1.5 lakh per 10 g by 2028–30 if inflation or crises hit hard.

Gold in India - Demand Trends & Cultural Pull

Jewellery vs Investment Demand

Despite a downturn in jewellery purchases in 2025, digital gold and gold ETF inflows surged - especially among millennials exploring small‑ticket purchases via apps.

Inflation & Currency Volatility

Persistent inflation and rupee depreciation against the dollar make gold attractive as a hedge-particularly in India where culture and trust run deep.

Policy & Regulatory Factors

Custom duties and GST structures impact physical gold prices. After 2024, import duty dropped from 15% to 6%, making physical gold slightly cheaper than before.

Smart Ways to Invest in Gold

Physical Gold (Jewellery & Bars)

Pros: Tangible asset, emotional value, and cultural relevance
Cons: Making charges, storage risk, illiquid resale, GST on jewellery

Sovereign Gold Bonds (SGBs)

·       Issued by RBI on behalf of Government

·       Fixed interest of 2.5% p.a. over an 8‑year tenure

·       Tax‑free capital gains if held to maturity

·       Scheme discontinued post‑February 2024, but existing bonds remain valid.

Gold ETFs & Digital Gold

·       Lower transaction costs, no GST/making charges

·       Fully liquid, purchase via apps like Paytm or through stock market

·       Prime choice for small investors and diversification

Smart Strategies for Gold Investors

Rule of Thumb: Buy During Dips

Wait for dips under ₹98,000–₹99,000 per 10 g and buy gradually. Many analysts suggest the momentum may pause before resuming upward.

Diversify Your Gold Basket

Mix physical gold, SGBs (if held), digital gold, and ETFs. Each provides liquidity, tax treatment, or emotional value in different ways.

Monitor Macro Cues

·       Fed rate cuts or hold decisions

·       Dollar‑INR swings

·       Global inflation readings

·       Seasonal demand cycles (e.g. festival and wedding seasons)

Evaluate Your Time Horizon

If investing long term (3–5 years), remain weighted to investment vehicles. Short‑term traders should watch volatility carefully.

Gold Outlook at a Glance

Factor

2025–2026 Outlook

Major Support Drivers

Inflation Hedge, Investor Safe-Haven Demand, Etfs

Near‑Term Trading Range

₹98,000–₹101,000 Per 10 G

Year‑End Price Target

₹1,10,000–₹1,15,000 Per 10 G

Global Forecast

$3,650–$3,950/Oz (Goldman); $2,900–$3,200 (UBS)

Long‑Term (2030)

₹1.25–₹1.50 Lakh Per 10 G Potential (Bull Case)

Jewellery Demand

Weak In 2025; May Rebound Only If Prices Fall

Investment Vehicles

Sgbs (Legacy), Gold Etfs, Digital Gold Preferred

Primary Risk Factors

Fed Policy Tighten, Rupee Strength, Duty Hikes

Risks Ahead: Why Gold May Drop

·     Central bank rate hikes could reduce gold’s appeal vs fixed income

·     Fed policy tightening may strengthen the dollar, pressuring gold upward

·     Import duty changes could impact domestic physical prices

·     Weak jewellery demand continues to drag retail consumption

Gold’s Timeless Allure Still Shines Bright: Is Gold Still a Good Investment?

As we reflect on gold’s journey—from ancient temples to modern trading floors—it becomes clear that gold isn’t just a commodity; it’s a cultural constant, a crisis hedge, and a symbol of wealth that transcends generations. Despite the volatility of global markets, rising inflation, and digital disruptions like cryptocurrencies, gold continues to stand tall as a store of value. Whether you're a seasoned investor, a cautious saver, or someone just intrigued by the shimmer of precious metals, gold offers something solid—both literally and financially.

The future of gold might not be paved with explosive overnight gains, but its strength lies in reliability and resilience. As central banks keep buying, geopolitical tensions remain high, and economies dance around recession fears, gold will likely remain a cornerstone in diversified portfolios. The key isn’t to blindly chase gold, but to understand why it holds value and how it can work for your goals.

So, whether you're thinking about buying your first gram or diversifying your assets with ETFs or sovereign gold bonds, remember: gold isn’t just an investment. It’s a long-term relationship with history, economy, and peace of mind.

 

28 June 2023

Impact Investing: Transforming the Funding Landscape for Entrepreneurial Change-makers

Impact Investing: Transforming the Funding Landscape for Entrepreneurial Change-makers

Impact investing is different than traditional investing. While the primary focus of traditional investment is on financial gains by aligning investments with investors’ values and objectives, impact investing refers to investment in businesses that aim to bring a positive impact in the society or environment along with financial returns. The funding landscape is changing drastically as investors and venture capitalists emphasize impact investing. In a world full of pressing social and environmental issues, impact investing is an impactful force reshaping entrepreneurs and entrepreneurship.

Impact investors are investing in businesses that are working on providing access to education, renewable energy, sustainable agriculture, healthcare, poverty reduction, etc. These kinds of investors are looking for opportunities that blend value with social and environmental outcomes. Entrepreneurs that seek investments in areas targeting to make positive change in society are getting investments easily as compared to traditional entrepreneurs. As a result, entrepreneurs are driven towards developing innovative business models that ensure positive impact and financial gains. Impact investing is a message that businesses with societal and environmental impact goals can be powerful vehicles of change.

Impact investing capitalizes on purpose. This breed of investors is ready to take riskier bets for greater social cause thereby expanding the funding universe. This nurtures out-of-the-box businesses that otherwise would not have come up due to fear of rejection from traditional investors.

Since more emphasis is on social good, impact investing focuses on regular measurement and reporting of financial and impact-related outcomes. Due to accountability, there is a greater assurance of transparency in these businesses.

Impact investors bring expert mentorship to the table for entrepreneurs by creating synergies with valuable networks. The collaborations foster knowledge sharing thereby accelerating the growth of the businesses and multiplying the impact. This, in a way, creates a thriving business ecosystem. Young entrepreneurs, who are a part of the impact investing system, pave the way for future generations to look out for innovative solutions that can change the world and rid it of social and environmental challenges. This collective movement provides hope for a future world that is sustainable and inclusive.

Impact investing is becoming more of a trend today. There is a fundamental shift in how investors want their capital to be used for the greater good and how entrepreneurs would approach entrepreneurship. Combining profit and purpose is the new norm in the world of business financing.

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