Halloween Strategy, also known as The Halloween Effect or The Halloween Indicator is an interesting investing strategy that has been around for a long time.

While the basis of the strategy depends on timing the market which we don’t think any serious investor should opt for, Halloween Strategy is an interesting case. 🔍

🔮It is captivating, alluring, and worth asking:
Trick or Treat? 🎃

This festive season, educate your parents & relatives on various ways they can invest in gold and how each one of them fares against the other.

📌When comparing the different types of gold investments, two more points to consider are:
1. Taxation
2. Whether or not your investment can be used as a collateral for loan.

💸Taxation:
All forms of gold mentioned here are classified as debt investments.
Hence taxation for all types of gold (except SGBs) follows the same taxation rules as that of capital gains in debt funds.

However with physical and digital gold, additional GST is charged at 3 per cent on the value of gold plus making charges.

🏠Collateral for loan:
All forms of gold can be used as collateral for loans.
However, for digital gold you first have to convert it to physical gold and then use it as collateral.