GOLD VS STOCK MARKET: A COMPARATIVE STUDY OF RISK AND RETURN

An investor has various investment options to invest his money and this all depend on his risk profile and expectation of returns. Different investment options represent a different risk-reward trade off. Out of different types of investment options Gold, Stock Market, Mutual fund and Fixed deposits in the Banks are available in the Market. Traditionally people in India Invest in the Gold in the form of Jewellery at the time of marriages and keep this gold for a very long period but at the same time investment in the stock market is very limited because of its risky nature and possibility of loss of value. Though recently people in India has started investing in stock market also but investment in Gold is still preferred over investment in stock market .People perceive it more safe and ever-growing investment as compare to investment in the stock market. In India the most popular Stock Exchange is National Stock Exchange and the maximum volume of stock trading is with this stock exchange.