The 3 most important personal financial instruments to watch out for in 2022

Innovation in personal finance makes our lives easier and allows us to make better choices in terms of investments, spending and savings. Personal finance is changing rapidly over time. In the past few years, we have seen the growth of UPI, e-wallets, sovereign gold bonds and many more personal finance tools in India.

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

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 of the leading online shopping apps and portals offer BNPLs as a payment option to their customers. BNPL adoption has surged in the pandemic, and is expected to continue to grow at a rapid rate.

Currently, it is typically used for a limited number of online shopping experiences, but it will likely expand to more online and offline experiences. Customers should be aware of the fees – the interest rate and penalties – while taking advantage of BNPLs and always ensure timely payment to keep costs at bay and their credit score is strong.


In the 2022 union budget, Finance Minister Nirmala Sitharaman imposed a 30 percent tax on digital assets. With this move, the government removed concerns about the banning of cryptocurrency by the country. Cryptocurrencies have seen a rise in adoption rates in India despite concerns such as lack of regulation and market-related volatility. In 2018, the Reserve Bank of India banned cryptocurrency trading in India.

However, a Supreme Court ruling in 2020 overturned the central bank’s order. Subsequently, crypto transactions grew diversified, and many new crypto assets were launched. Investors in India consider cryptocurrencies as a way to earn higher returns. However, some doubts loomed. The government still needs to decide on its legality with the pending cryptocurrency bill. Regulation may provide clarity and safety nets for investors.

Silver ETFs

For Indians, gold and silver have both financial and sentimental value, but owning and selling them presents challenges. Like gold, you now have another asset class to diversify your portfolio with in 2022. In November 2021, the Securities and Exchange Board of India (SEBI) allowed mutual fund companies to offer silver trading fund (ETFs) in the India market.

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. The ETFs will be measured at the spot price of silver decided by the London Bullion Market Association (LBMA). There will be no exit burden on silver ETFs. Several companies have already offered their own silver ETFs, while others have lined up.

Immaterial silver is easier to buy and sell. No taxes, no storage concerns, no doubt about purity.

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

(Author is CEO,

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