Latest news with #LovishAnand
India Today
04-07-2025
- Business
- India Today
Gold gathering dust in locker? Financial advisor explains how to make it work
What happens when the gold meant to secure your future quietly begins to decay in a bank locker?Financial advisor Lovish Anand recently shared the story of a close friend who discovered that her family's heirloom jewellery had rusted after water seeped into a basement locker during flooding. The bank offered little help, as the standard insurance barely covered Rs 3 you think your gold is safe in that locker think again,' Anand wrote in a recent LinkedIn post. 'Most lockers are insured for just Rs 3 lakh. That's barely enough to cover the value of even a modest set of jewellery.' According to Anand, many people still treat lockers as the ultimate vault for family gold. But in reality, these lockers come with minimal protection. Even in the case of theft, fire, or natural disasters, the compensation offered is often linked to the annual locker rent, typically no more than a few thousand rupees. That means the maximum insured amount rarely exceeds Rs 2–3 lakh, regardless of what's inside.'People keep gold bars, old coins, wedding jewellery worth lakhs, sometimes crores, in these lockers. But the protection they assume is there doesn't really exist,' Anand explained. 'It's false comfort.'For countless Indian households, gold is more than just an investment. It's tradition, emotional security, and often a family's hidden financial backup. But Anand believes that leaving it idle and unprotected exposes it to risks—not just physical deterioration but also poor documentation and missed financial he points to a government-backed option that offers both safety and growth: the Gold Monetisation Scheme or GMS.'This is not about selling your gold. It's about making it work for you, safely and passively,' he GMS, individuals can deposit unused gold with authorised banks for tenures ranging from five to fifteen years. The gold is tested for purity, officially weighed, and recorded. Depositors earn 2.25 to 2.5 percent annual interest on the value of gold at the time of deposit. Importantly, the scheme eliminates worries about rust, theft, or locker insurance limits.'Yes, there's a lock-in period of three to five years,' Anand acknowledges. 'But let's be honest. Most families aren't planning to touch that gold anyway. Why not let it earn something in the meantime?'He's clear that this is more than a financial tip. 'It's a mindset shift,' Anand says. 'Lockers were never meant to preserve wealth for decades. They're just storage boxes. If gold is part of your long-term safety net, it needs a smarter home.'advertisementThe message, ultimately, is cautionary but also constructive.'This isn't about panic,' Anand writes. 'It's about awareness. Families across India have legacy gold gathering dust. The Gold Monetisation Scheme offers a way to preserve it, secure it, and quietly grow its value, all without losing ownership.'The call to action is simple. Don't wait for water damage or disaster to prompt a rethink. For families holding on to old jewellery, coins, or bullion, it may be time to ask: is that locker truly preserving wealth or just letting it rust in silence?(Disclaimer: This article is for general informational purposes only and does not constitute financial advice. Readers are encouraged to consult a certified financial advisor before making any investment or financial decisions. The views expressed are independent and do not reflect the official position of the India Today Group.)- Ends
India Today
19-06-2025
- Business
- India Today
Your savings account is quietly robbing you, says financial advisor
You save diligently. You cut back on luxuries. You park your hard-earned money in a savings account or a fixed deposit, thinking it's the safe and responsible thing to do. But what if that very habit is slowly eating into your wealth? Financial advisor Lovish Anand has issued a sharp reality check for Indian savers in a recent LinkedIn post titled: 'Your Savings Account Is Quietly Robbing You.'advertisementAnand said most Indians still rely heavily on traditional instruments like savings accounts, fixed deposits, or LIC policies for financial planning. But these tools, he warns, aren't keeping up with inflation, and in many cases, are actually reducing your purchasing power over time. The disparity between interest rates and inflation is significant, with SBI's savings account interest rate at just 2.5% while inflation hovers around 5-6%. "SBI's latest interest rate? Just 2.5%," Anand pointed out, "Inflation? Hovering at 5 to 6%. Let that sink in." The impact of this imbalance is stark. Even with significant savings, such as 10 lakhs, individuals are technically losing money every single year. Anand describes fixed deposits, LICs, and savings accounts as "safety nets" that can sometimes be "leaky," highlighting that while they offer security, they do not foster wealth suggests moving past outdated financial habits that don't align with one's long-term goals. "Fixed deposits, LICs, and savings accounts aren't wealth creators," he says. "They're safety nets. And sometimes... they're leaky." He emphasizes, "If your financial plan still revolves around these, you're not just playing it safe, you're playing it small."To mitigate the erosion of wealth, Anand advocates for a strategic shift based on individual risk appetites. He suggests exploring alternatives like index funds, mutual funds, hybrid funds, and arbitrage funds. "These are low-cost or professionally managed options that can help your money grow instead of gathering dust," he remarks reflect a broader trend towards more dynamic and growth-oriented financial instruments, which offer the potential for better returns compared to traditional savings methods. He asserts, "Your money deserves to grow," and warns against letting it "sit idle while inflation chips away at its value."By embracing newer financial tools tailored to diverse risk profiles, savers can potentially enhance their financial outcomes. The objective is to transition from merely preserving wealth to actively growing it in a way that outpaces inflation and meets personal financial call to action is clear: "It's time to rethink your money strategy. Depending on your risk appetite, consider smarter alternatives." These alternatives include index funds for low cost, long-term wealth compounding, mutual funds that are professionally managed and tailored to your goals, hybrid funds balancing growth and stability, and arbitrage funds as a low-risk alternative to idle insights encourage savers to critically evaluate their financial plans and adapt to the evolving economic environment, ensuring their savings work effectively towards securing their future financial Watch
