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Understand the benefits of SIP in gold and how it can help you grow your wealth. Learn how to invest in gold through SIP to secure your financial future.
Ever wondered how you could turn your everyday savings into a glittering future? With a Systematic Investment Plan in gold, it is not just a dream but a practical reality.
You can start small, investing regularly in digital gold without the need for a hefty initial sum. It is like planting seeds of wealth that grow steadily over time. SIP in gold offers a simple yet powerful way to secure your financial future, making gold investment accessible and rewarding.
Go through this blog to understand how SIP in gold can pave the way to financial security and prosperity.
What Is a Gold Systematic Investment Plan?
A Gold Systematic Investment Plan (Gold SIP) lets you invest a fixed amount regularly in digital gold. If the idea of buying a large amount of digital gold upfront seems daunting, a Gold SIP offers a more manageable option.
It allows you to invest in gold mutual funds with smaller, regular contributions, such as daily, weekly or monthly instalments. This approach does not require you to own physical gold directly but lets you diversify across different asset classes and protect against inflation.
Similar to regular SIPs, investing in gold mutual fund SIPs encourages disciplined saving habits. These funds pool money from investors to buy gold-related assets, allowing you to make consistent contributions at fixed intervals, regardless of market ups and downs. Moreover, this approach makes gold investment more affordable by spreading out the cost over time.
For instance, if you choose a monthly SIP with a contribution of ₹1,500, your investment will align with the chosen instalment date each month. On that date, your ₹1,500 will be used to purchase units of the gold fund at the current Net Asset Value (NAV).
What Are the Features of Gold SIP?
The following are some crucial features of Gold SIP:
No Need for a Demat Account
Just like regular mutual fund SIPs, investing in gold through SIP does not require you to open a demat account. This makes the investment process straightforward and accessible for everyone.
Easy Access to Your Investment
Gold funds offer convenient liquidity, meaning you can easily buy and sell units just like other mutual funds.
This ensures that your investment is always available when you need it. If you find yourself in a financial pinch, you can quickly redeem your gold fund units without hassle.
Flexible Investment Options
With gold funds via the SIP route, you can choose how much to invest at regular intervals. Whether you prefer to invest daily, weekly or monthly, you can align your gold investments with your financial goals.
This flexibility allows you to tailor your investment to match your portfolio objectives and desired duration. For instance, you might decide to invest ₹1,000 each month to steadily build your gold holdings.
What Are the Benefits of Gold Investment Through SIP?
Here are the benefits you can enjoy by investing in a SIP in gold:
Invest Regularly
Investing money can seem daunting if you think you need a large sum upfront. However, with a Gold SIP, you can start with small amounts that fit your budget and income.
For example, instead of waiting to save up a significant sum, you could begin investing ₹10 daily.
Average Out Cost with Periodic Investments
Gold prices fluctuate daily, which can make timing your purchases challenging. By investing regularly through a SIP, you average out these costs over time.
Some months you might buy gold at higher rates, but over the long term, your average purchase price could be lower.
Set Up Auto-Debit for Convenience
Setting up an auto-debit with Jar simplifies your SIP investments. This ensures you never miss an investment, as the money is automatically deducted and directed to your chosen investment avenue.
For instance, you could schedule ₹5,000 to be debited monthly for your Gold SIP.
Diversification of Portfolio
By integrating SIP in gold into your investment strategy, you reduce the risk of putting all your money into one investment. Diversifying your portfolio means spreading your investments across different assets.
Adding a gold SIP introduces a unique and potentially beneficial asset compared to other investment options available to you. For instance, if you mainly invest in stocks and bonds, a gold SIP provides a hedge against market fluctuations, diversifying your risk.
How to Invest in Gold Through SIP?
Follow the below step-by-step procedure to invest in gold through SIP:
Step 1: Register on a Reliable Digital Gold Platform
Begin by signing up on a trusted digital gold platform such as Jar App.
Step 2: Initiate Your SIP
Once registered, start your SIP by choosing a fixed amount to invest either regularly, weekly or monthly.
Step 3: Allocation of Gold
The platform will allocate gold equivalent to your chosen investment amount based on current market rates.
Step 4: Accumulate Over Time
Through these consistent investments, gradually build up a significant holding of gold that mirrors the total value of your contributions.
The Bottom Line
Incorporating a SIP in gold into your investment strategy can offer numerous benefits. By investing regularly, you can average out costs and protect yourself against market volatility. Setting up a Gold SIP is easy and does not require much effort.
With platforms like Jar App, you can easily start your Gold SIP and begin building your wealth. Whether you choose to invest a small daily amount or a larger monthly contribution, a Jar helps you secure your financial future. So, why wait? Start your SIP in gold today and unlock the potential of gold investment!
Frequently Asked Questions
1. Can I invest in gold SIP?
Yes, you can invest in a gold SIP. Gold Fund SIP enables investing in gold funds with smaller, manageable amounts at regular intervals, such as weekly or monthly. For instance, if you opt for a monthly gold fund SIP, your investment will align with the chosen monthly instalment date.
2. Do I have to pay taxes on a gold SIP?
Yes, you have to pay taxes on a gold SIP. Selling physical and digital gold incurs a tax of 20.8%. For the Short-Term Capital Gains (STCG), the tax depends on your income slab.
3. What is the minimum amount needed to start a SIP in gold with Jar App?
With the Jar app, you can start a SIP in gold with as little as ₹10. It allows you to save 24-carat gold at 99.5% purity and build wealth and security for you and your family.
