Hey there! Have you ever thought that applications such as Gullak Money which offers high profit are actually a real application or only a scam? Well, you’re not alone! I’m here to explain it in simple terms for understanding if Gullak is real or fake. let’s get into the Gullak App to find out if your money is safe here or not.
What is the Gullak App?
To begin with, Gullak is an investment app in which people can invest in digital gold. Sounds cool, right? It doesn’t make you purchase gold bars which you store in a box at home but it introduces you to gold investment. But don’t worry! It still has actual accounts of real gold, which is safely stored in their platform. Here’s how it works:
- To use True Gold, you have to invest in it and buy digital gold with real money deposited into the app.
- The app exchanges this digital gold into physical gold with the assistance of Augmont which is one of the reputed gold refineries based in India.
- The app then sells this gold to jewellers who repay it with interest. This is where you get your returns, interest.
- Namely, your money is not useless but active and makes you some sort of a profit even when you are asleep.
Is Gullak Legal?
Okay, now let’s get serious. Is Gullak legal? The answer is YES, with one catch.
Legal: It only uses authorized platform for payment and purchase of gold. All operations are clear and have orders to be obeyed.
Not Regulated: However, like most advisory firms in India Gullak is not directly registered with a regulatory authority such as SEBI. This means that there are no specific laws or rules of the App like this completely. If something goes wrong, there is no one to answer for it. Despite this, people should be careful because even though it’s legal to use, it doesn’t get full support from strict laws.
While Gullak provides an opportunity to invest in digital gold and potentially earn profits, it also carries significant risks and uncertainties. If you want a more regulated and transparent platform with a range of investment alternatives, go into Angel One. Angel One provides a variety of investment products with clear terms and conditions, making it a dependable option for people wishing to diversify their portfolio and manage risks properly. Open an account with Angel One– Click here
How does Gullak promise 16% returns?
Here’s where it gets complicated. Gullak says you can earn up to 16% returns. Let’s break it down:
Gold Price Growth (11%):
Annual average inflation for gold prices stands at about 11% (in historical terms). But remember, this is not guaranteed. Gold prices may rise but it also may decrease.
Fixed Returns (5%):
If investors commit to lock their investment for a period of at least 15 months, Gullak provides 5% fixed returns.
Thus 16% = 11% (growth in gold) + 5% (fixed rate of return). Pretty good, right? But there can also be some pitfalls, though.
GST and Other Costs
Here’s the not-so-fun part about investing with Gullak:
GST (Goods and Services Tax): If you invest for less than fifteen months, you will be charged a 3% GST. That means for every Rs. 100 that the business invests, Rs. 3 is paid out for GST.
Buy-Sell Difference: If you purchase gold today and sell it instantly tomorrow, you find yourself out of pocket by 2 – 3% for charges like insurance, storage, and transportation costs. Therefore, there is no such thing as getting rich instantly, so do not set your sights on making money the day you start working online.
What About Safety?
Is your money safe in Gullak? Well, yes and no.
Yes, it’s safe:
For this, they collaborate with firms like Augmont, the app also features the possibility to exchange your digital gold for physical gold. You can go to Tanishq stores for gold delivery.
No guarantees:
Just like any other investment, there is no way one can be very sure all the time. Currently, gold prices are volatile, and if the application has some issues, then you can be financially disappointed.
Thus, it means that it is not a scam, but there is always some risk present at least. Play it safe!
Pros and Cons of Gullak
Let’s sum up the good and the not-so-good stuff about Gullak:
Pros:
- Easy to Use: Good for those who has no experience in investing.
- Small Investments: Start with as little as Rs. 10.
- Extra Returns: Receive guaranteed fixed percentage returns on long-term investments of up to 5%.
- Physical Gold Option: One can redeem Digital gold in physical gold.
Cons:
- Not Regulated: No social insurance or welfare measure to protect members of society.
- GST Charges: 3% GST during the first 15 months, after which you are required to lock your money.
- Buy-Sell Loss: Instant selling results to a 2-3% shrinkage.
- Fluctuating Gold Prices: Delivery depends on prevailing market conditions.
Should You Invest in Gullak?
So, is Gullak worth it? Here’s what I think:
If you’re hunting for a safe and long-term opportunity, then Gullak is all right. It has a understandable structure as well as reliable partners like Augmont.
However, if you’re looking forward to getting rich quick or having your money in the bank all the time, then this may not suit you. Of course, prices of gold can rise and they can also fall and there is the element of some risk.
My advice? Start small. Try it on an absolutely small scale, get a feel of how it works and then decide if you would want to be fully immersed in it.
While Gullak offers digital gold investment, Angel One provides a more secure, regulated platform for diverse investments, ensuring better protection and transparency.
Open an account with Angel One– Click here
Conclusion
So in conclusion, Gullak is real but not real in its entirety. This is a form of investing in gold that is suitable particularly to a wise investor who has papers and a clear understanding of the investment arrangement. All investments are a bit high-risk, it’s wise to go through the terms and condition’s part and should never risk all their money in one link. Invest in different products and make a informed decisions.
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