Investments Whose Returns Don’t Matter

Not every investment you make is based on the sole intention of earning returns. There are certain investments where returns never matter. We have covered the following in this article:

Housing property

If you reside in the only housing property that your family owns, then the returns that your housing property would offer hardly matters. Many of us strive with the view of making the dream of owning the dream home come true. The returns offered in the form of capital gains by your housing property won’t make a difference as far as you intend to occupy the same. 

There is no doubt that real estate investment has gained good traction in the major Indian cities over the last two decades, but the rising rent has called for individuals to own a house to save a considerable sum in the long run. The returns offered by your housing property would matter only when you own multiple houses and intend to make profits by selling them. 

Emergency fund

An emergency fund is a corpus accumulated to cover expenses even during the crisis, resulting in adverse situations such as job loss and medical emergencies. Even though your emergency corpus is a sizable sum as it would be sufficient to cover your living expenses for at least three months, you still wouldn’t want to invest the same in risky assets with the view of earning higher returns. 

An emergency corpus is created by investing in a liquid fund or saving a sum in a savings account, and these instruments don’t offer higher returns. Yet, you are not required to chase returns as the main reason behind having this corpus by your side is to meet unexpected expenses and sail through the difficult scenario arising due to a crisis. 

Gold jewellery

The love of yellow metal in India dates back centuries. Almost every Indian household has a considerable amount of gold ornaments and jewellery at its disposal. Hardly any Indian wedding takes place without the exchange of gold and people showing off all the gold jewellery they have in their possession. 

Buying gold jewellery with the view of ‘investing’ in gold as an asset is never advisable. Purchasing physical gold comes with additional costs such as making, wastage and storage costs. Therefore, you may buy gold jewellery for the purpose of wearing them on various occasions. In this case, the returns offered by gold won’t matter. 

Conclusion

Not every investment you make should be with the view of earning high returns. There are certain assets that are bought for self-possession and esteem. With these, the returns never matter.