Personal finance

Top 3 personal finance instruments to watch in 2022

Here are the top three personal finance tools you should know about.

Innovation in personal finance is making our lives easier and giving us better choices when it comes to investing, spending and saving. Personal finances change rapidly over time. Over the past few years, we have witnessed the growth of UPI, e-wallets, sovereign gold bonds and many other personal finance instruments in India.

Here are the top three personal finance tools you should know about.

Buy now, pay later (BNPL)

To provide easy access to a credit facility, lending institutions now offer a loan called Buy Now Pay Later (BNPL). Most major online shopping apps and portals now offer BNPL as a payment option to their customers. BNPL adoption has exploded during the pandemic and is expected to continue growing at a rapid pace.

Currently, it’s typically used for a limited number of online shopping experiences, but it’s likely to expand to more online and offline experiences. Clients should be aware of the fees (interest rate and penalties) when using BNPL and ensure they always pay in a timely manner to keep costs down and maintain their strong credit rating.


In the Union Budget 2022, Finance Minister Nirmala Sitharaman introduced a 30% tax on digital assets. With this decision, the government has allayed fears over the country’s cryptocurrency ban. Cryptocurrency has seen an increase in adoption rates in India despite apprehensions such as lack of regulation and market-related volatility. In 2018, the RBI banned crypto trading in India.

However, a Supreme Court ruling in 2020 overturned the central bank’s order. After that, crypto transactions surged and several new crypto assets were launched. Investors in India see cryptocurrencies as a way to earn higher returns. However, some uncertainties loom on the horizon. The government has yet to decide on its legality through the pending cryptocurrency bill. Regulation can provide clarity and safety nets for investors.

Silver ETFs

For Indians, gold and silver have both financial and emotional value, but owning and selling them presents challenges. Like gold, you now have one more asset class to diversify your investment portfolio in 2022. In November 2021, the Securities and Exchange Board of India (SEBI) authorized mutual fund companies to introduce silver exchange-traded funds (ETFs) in India. Marlet.

Investors will no longer need to hold physical silver in physical form as the ETF will allow them to trade the metal in Demat form. Silver ETFs will invest 95% of their assets in silver. ETFs will be referenced to the silver spot price decided by the London Bullion Market Association (LBMA). There will be no exit charge on silver ETFs. Several companies have already introduced their silver ETFs, while others are lined up.

Dematerialized money is easier to buy and sell. There’s no tax, no storage worries, no doubts about purity.

New investors may note that silver is more volatile than gold and therefore their exposure to this metal should be calibrated according to their return expectations and risk appetite.

(The author is CEO,