Physical assets lack portability for relocating investors

Physical assets like land and gold offer the comfort of a touch-and-feel investment, but The Hindu warns they come with significant drawbacks. For investors who frequently relocate for work, portability is a major concern: real estate cannot be moved, and converting gold into cash takes effort, requiring safe storage such as bank lockers that are not easily available.

The Hindu notes that while land can be converted into a house for self-occupation and gold bars into jewellery if prices do not rise, these assets are not liquid. Investors may struggle to sell at a fair price when cash is needed for life goals, making financial assets a better primary choice for those facing work-related moves.

As an alternative, Real Estate Investment Trusts (REITs) are suggested for earning rental income without the lumpy nature of direct real estate, though The Hindu cautions that REITs are listed on stock exchanges and exposed to market risk, meaning their prices can fall when the market declines.