Is Cash Still The King?

While every now and then, the government keeps harping about reducing cash transactions, there are several Indians who still earn in cash heavily to evade taxes. Most of the time these people cannot invest in regular instruments like a mutual fund or a fixed deposit. Then how do they grow their money?A detailed discussion with financial experts revealed that either these people invest in real estate or in physical gold. Despite this, they forfeit the opportunity of yielding better returns, which they could have garnered had they been not earning and investing money in cash. Even though following demonetisation, the habit of earning and spending in cash has been arrested to some extent, the practice is still rampant. The only difference is that, people are now a bit more wary of flaunting their cash, as  such, an act that might attract the taxman’s lens. However, when this...