4 activities the wealthy do differently and why they work

The number of wealthy individuals on the planet is growing. In fact, the billionaire census shows that there are currently more worldwide billionaires than ever before. While the reasons for this figure range from the wide options made available by technology improvements to the sheer increase of well-planned investments, the desire to understand what the affluent do differently is stronger than ever.


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1. Invest in Art

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While art is often seen as a high-risk investment, it offers numerous distinct advantages.


Art market price changes vary from stock market price swings, meaning that they might be utilised to hedge against a recession or catastrophe.


People buying art at times of danger and uncertainty and prospering, such as during WWII, and now, in nations with unstable economies and currencies prone to depreciation, the rich commonly invest in art to diversify their risks.


2. Invest in Jwellery

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Gold and gold jewellery have always been popular investment options for most Indians. Investing in gold is not only an excellent inflation hedge, but it is also seen as an investment that improves the buyer's prestige and paints the buyer's pride. However, as times have changed, many more possibilities in gold and jewellery have developed.


Previously, gold was purchased and then stored at home, but now individuals are hoping to generate additional money from it through investments. According to experts, new choices such as a gold bond, sovereign gold bonds, or even exchange-traded funds (ETFs) are far safer and less dangerous than traditional physical gold and gold jewellery investments.


Firoz Aziz, Deputy CEO of Anand Rathi Wealth Management, commented on the risks associated with jewellery investment "Because the jewellery business is unregulated, investing in jewellery is fraught with danger. As a result, all jewellery schemes on the market are unregulated and hence pose a substantial credit risk." Aziz encouraged clients who wish to invest in gold to go for gold bonds, and sovereign gold bonds may be a better alternative for investors. He also stated that there are gold mutual funds accessible in the market. For a mutual fund investor who wishes to participate in the gold asset class, there are both debt and equity gold mutual funds available.


3. Good Old Investments

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Finally, when it comes to financial instruments, the wealthy and famous are known to take measured risks while being hedged against uncertainty. Whether it's making a risky market investment while balancing it with ULIPs (Unit Linked Insurance Plan) or just deciding to guarantee their luxury goods with traditional insurance, the wealthy have always been clear about protecting their money. Their unwavering reliance on insurance instruments to stabilise their high-risk assets, as well as their awareness of simple risk-mitigation techniques like as ULIP, have aided them in making the major leap ahead in the world of investing.


A ULIP is a good long-term investment that also offers reliable protection to you and your loved ones. It is also flexible and gives you an opportunity to satisfy your risk appetite in a safe way. However, it is always a good idea to consult an expert before investing.


Thanks for reading till here.