Despite rising financial literacy, millions of Indians still choose gold over systematic investment plans (SIPs) — even when data proves SIPs outperform gold in the long run.
But why?
This isn’t just about returns — it’s about mindsets, culture, and emotion. Let Vizzve decode the behavioural finance reasons behind this fascinating financial preference.
🪙 The Numbers Say SIP Wins, But Emotions Say Gold
| Investment | 10-Year CAGR (approx.) |
|---|---|
| Gold | 7–8% |
| SIPs (Equity MFs) | 12–15% |
Yet, India’s household gold holding is estimated at over 25,000 tonnes, making it one of the largest in the world.
Why such irrational preference? Enter behavioural finance.
🧠 Behavioural Triggers Behind Gold Preference
1. 🧓 Tradition > Data
Gold has been part of Indian rituals, weddings, and family wealth stories for centuries. SIPs? Barely a few decades old.
💬 “Gold is what my grandmother gave my mother, and now me.” — this generational emotional anchor is powerful.
2. 👀 Visibility Bias
Gold is tangible — you can wear it, touch it, lock it in a safe. SIPs are just numbers on a screen, making them feel less real.
3. 🛡️ Security Illusion
Gold is seen as a safe-haven asset, even if its price fluctuates. People forget SIPs offer rupee-cost averaging and long-term resilience.
4. 🧠 Loss Aversion & Volatility Fear
Stock market = fear of loss. SIPs expose people to equity volatility, which most Indian savers have been conditioned to avoid.
🔄 Behavioural quirk: The fear of loss is twice as strong as the joy of gain.
5. 💰 Gold Feels Like Saving, SIP Feels Like Spending
Buying gold feels like accumulating wealth. SIP debits feel like monthly expense – unless the value is tracked regularly.
💡 How Vizzve Helps Change the Gold-First Mindset
✅ 1. SIP Visualizers
Vizzve turns invisible SIPs into milestone-based visuals, showing real progress — just like you weigh gold in grams.
✅ 2. Gold vs SIP Calculator
Compare your gold investment vs SIP over 5, 10, 15 years and see the true value gap.
✅ 3. Emotion-Driven Nudges
Our app sends behaviourally timed nudges like:
“If you buy ₹10,000 gold today, your SIP from 2015 would be worth ₹38,000 more!”
✅ 4. SIP for Weddings? Why Not!
Set SIP goals for future weddings or child gifting — traditionally gold-dominated. Vizzve makes SIPs the new heirloom.
💬 Real Stories: Behaviour Meets ROI
Asha from Pune shifted from monthly gold buying to a ₹3,000 SIP when she saw Vizzve’s “Digital Dhan” chart. She now tracks her SIP like her gold weight.
Gaurav in Jaipur built a SIP-based down payment for his home, which beat the value of the gold his family planned to pawn.
❓ FAQs – Gold vs SIP | Vizzve Answers
Q1. Isn’t gold safer than mutual funds?
Gold is perceived safer, but SIPs across diversified equity funds have historically outperformed with less inflation risk.
Q2. What if markets crash?
That’s where SIPs shine — buying more units during downturns. Gold, on the other hand, can remain stagnant for years.
Q3. Should I stop buying gold?
Not at all. But balance it — treat gold as an emotional or consumption asset, and SIPs as your wealth creation tool.
🧭 Vizzve’s Take: Time to Shift Mindsets, Not Just Portfolios
Cultural habits don’t change overnight — but smart tools, behavioural nudges, and goal-based SIPs can help Indians see that real wealth isn’t always gold-coloured.
✨ Let Vizzve make your SIP feel as real and rewarding as your gold.
Published on : 10th July
Published by : SMITA
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