Akshay Trutiya - More
Facts Than What You Were Forced to Believe All These Days!
by B. Padmanaban, CFPCM
Certified Financial Planner, Chennai
Akshay Trutiya, is a holy day for Hindus and Jains. It falls on
the third Tithi (lunar day) of Bright Half (Shukla Paksha) of the pan-Indian
month of Vaishakha and one of the four most important days for Hindus.
It is an
auspicious day of the birthday of Lord Parasurama who is the sixth incarnation
of Lord Vishnu. On this day Veda Vyas began to write Mahabharata. Jains
celebrate this day to commemorate Tirthankara Rushabhanatha's ending of
one-year fast by consuming sugarcane juice poured into his cupped hands.
– Courtesy - wikipedia
The word "Akshay" means the never diminishing in
Sanskrit and the day is believed to bring good luck and success. It is believed
that if you do charity on this day you will be blessed.
The day is considered auspicious for starting new ventures:
Assumed to grow and bring prosperity.
Now let's get into reality....
Akshay Trutiya is very popular if I remember right, in the
last 15 years or so. Jewelers’ utilized this opportunity and positioned in such
a way that everyone should buy gold and it is hugely success as well.
Let’s look at the reality of what happened in the last 5 years
when it comes to GOLD investment. 5 Years is relatively longer period when it
comes to investing.
28th April 2012 gold price were trading at
29,107 and it was closed yesterday at 28,875. One more observation is, even if
you take it, year on year performance from the day one bought it has never
increased, emotion plays a bigger role when it comes to investing to many of
us, so without calculating anything we keep buying. Here, it is only blind
faith and never verified!
I have observed one more thing, let us assume somebody has not
invested lump sum and they have invested through monthly chit (which is very
popular in Chennai, not sure about other states) and the value is one and the
same. It clearly indicates passive investment will not work. See the below
table of Gold Investment in SIP.
Sensex value as on 27/4/12 is 17,134 and it was closed 29,918.
The absolute return in the last 5 year is 74.61 in terms of CAGR it is 11.8%
only.
I have given you some of the mid and small cap funds which were
popular in those days and their returns and anyone can see their own investment
returns or any other fund they feel it’s a good fund. I have provided just for
illustration purpose only. I used to say jokingly to all my clients, if you
invest in GOLD you can give X amount to your daughter and if you invest in
mutual fund it will be at least 2X, you decide how much you would like to give
your daughter!!!
|
|
NAV Value as on
|
|
|
|
|
Fund Name
|
28-04-12
|
28-04-17
|
CAGR
|
Abs Return
|
|
HDFC Midcap
Opportunities
|
16.44
|
51.87
|
25.84%
|
216%
|
|
DSPBR Small &
Midcap
|
17.12
|
51.63
|
24.70%
|
202%
|
|
Reliance Smallcap
|
9.16
|
37.2
|
32.35%
|
306%
|
|
Mirae Asset Emerging
Bluechip
|
11.43
|
44.57
|
31.28%
|
290%
|
|
Franklin India Prima
Fund
|
267
|
893.4
|
27.32%
|
235%
|
International gold price has touched all time high as on 22nd August
2011 as $ 1,917.90 per ounce and yesterday closing price is $ 1,268
and it is down by 33.85%. In the same time our rupee has weakened from 45.66 to
64.23 against USD. There is an absolute increase of 40.67%.
I am not here to
predict what will be the gold price in future, but one thing I can be rest
assured is there will not be much appreciation henceforth from the currency.
My humble submission to everyone is never buying gold as an
investment, buy gold as an ornament which you constantly wear. Do not start any
gold investment even if you have girl child. Gold is important for the
marriage, but it does not mean that we should invest only in gold!
Last, but not the least investment have no emotions, so whenever
you invest do not show emotions. Gold and Real estate investments are more out
of emotions which is proven now. Real estate has also not grown much in the
last 5 years, but it is not regulated and no such data available I am not in a
position to give any data.
About the author
B.
Padmanaban, CFPCM
Certified
Financial Planner
9884349173
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