• 22 Aug , 2024
• Blog

Guide to Invest in Gold Through SIP: Know This Before You Invest

Why wait for a pot of gold when you can gather it bit by bit?

Investing in gold through a Systematic Investment Plan (SIP) lets you do just that. Instead of waiting for the perfect time to make a large gold investment, SIPs allow you to invest small amounts of money in gold regularly. This makes gold investing accessible and manageable.

It’s like collecting gold in small portions without the stress of market timing. Whether you're a seasoned investor or just starting, a sip gold investment plan can be a valuable addition to diversify your portfolio.

But before you jump in, it’s essential to understand how digital gold sip works, the benefits, and how to get started. So, if you’re ready to take a golden step towards financial security, read on to discover why this approach could be your best move.

What is Digital Gold SIP?

A digital gold SIP plan means investing in gold funds through small, manageable amounts at regular intervals, such as daily or monthly. This approach lets you invest in gold without buying it physically. By using a Gold SIP plan, you can diversify your investments and protect yourself against inflation.

Just like regular SIPs, investing in gold SIP helps you build a habit of disciplined investing. Digital gold SIP platform will handle the purchase of gold on your behalf based on the amount you invest. This means you can regularly invest a fixed amount in gold through SIP, regardless of market volatility.

A Gold Systematic Investment Plan (SIP) presents a valuable opportunity to those who may not be able to afford large purchases of gold. 

This approach is particularly beneficial for college students, young professionals and anyone who finds it challenging to save money or can't afford to invest in gold in one go. It’s an easy way to develop a saving habit and get started with gold investment without needing a lot of money at once. 

How does Digital Gold SIP work?

A Digital Gold SIP works the same as other SIPs which automates your gold investment process. For example, if you decide to invest ₹500 each month, this amount will be automatically deducted from your bank account on a specific date, such as the 15th of every month.

On this date, ₹500 is used to buy gold at the current market price. Gold prices fluctuate frequently, so the number of units you can get for ₹500 will vary depending on the gold price on that particular day.

This method is great because it allows you to invest in gold without having to worry about buying physical gold and storing it safely. Plus, it's a convenient way to start building your gold investment over time.

Features of gold SIP Plan 

No Demat Account Required: Just like with regular mutual fund SIPs, you won’t need a Demat account for gold funds. This makes getting started with gold investments a breeze.

Flexible Investment Amount: With a Gold SIP, you can pick how much you want to invest and how often. Whether you want to invest daily, monthly, or quarterly, it’s all up to you. This flexibility helps you fit gold into your investment plans and adjust it based on your goals and timing.

Easy Liquidity: Investors can redeem gold units any time. This ensures that your investment stays liquid and accessible whenever you need it.

Benefits of Investing in Gold SIP 

1. Portfolio Diversification

Gold is often considered a safe-haven asset, which means it can help protect your portfolio during economic downturns. When other investments like stocks and bonds are falling, gold prices tend to rise. By investing in a digital gold SIP, you can diversify your portfolio and reduce your overall risk.

2. Small Investments

Gold SIPs allow you to start investing in gold with small, regular contributions. You can start with as little as ₹500 per month. This makes it accessible to investors with limited funds. You can gradually build up your gold holdings over time without a large lump-sum investment. Gold SIP is a convenient and affordable way to invest in this precious metal.

3. Flexibility

You can adjust your SIP amount according to your financial situation. This flexibility allows you to increase or decrease your investment as needed. Plus, gold SIP can be canceled at any time in the future.

4. Liquidity

Gold is a highly liquid asset. Gold SIPs offer the flexibility to redeem your investment when needed.  This can be beneficial for accessing funds in case of emergencies or for other financial goals.

5. No Storage Issues

Unlike physical gold, which requires safe storage, Gold SIPs eliminate the hassle of storing and securing gold. Your investment is electronically held and managed by your investment provider. 

6. Convenience

Investing in a Gold SIP is simple and convenient. You can set up a recurring investment through your bank or investment platform. The funds are automatically deducted from your account and invested in gold. This eliminates the need for manual transactions and saves you time and effort.

Overall, sip gold investment is a convenient, affordable, and potentially profitable way to invest in gold. If you're looking to diversify your portfolio and protect your wealth, a Gold SIP may be worth considering.

How To Start Gold SIP Online with Digi Gold? 

DigiGold is a popular platform for investing in digital gold. Starting the best Gold SIP with Digi Gold is a quick and convenient process. Here’s how you can get started:

1. Create an Account:

 - Visit the DigiGold website (https://www.digigold.com/) or Download the DigiGold App from the Play store.
 - Sign up for a new account by providing your basic details. 

2. Complete KYC:

 - To start investing, you'll need to complete Know Your Customer (KYC) verification. This typically involves uploading documents like your Aadhaar card and PAN card. 

3. Link Your Bank Account: 

 - Once your KYC is verified, add your bank account details to enable automatic payments for your SIP.

4. Set Up SIP:

 - Go to the "SIP" section.
 - Use the SIP Calculator - This tool helps you estimate your potential returns based on factors like your investment amount, SIP frequency, and expected gold price appreciation. Play around with the calculator to understand how different variables can impact your investment.
 - Choose the amount you want to invest each month.
 - Select the date on which you want the SIP to be deducted.
 - Specify the duration of the SIP.
 - You can use net banking, UPI, or credit/debit cards to deposit money.

5. Confirm and Start:

 - Review your SIP details and confirm.
 - Your SIP will start on the specified date.

Additional details:

 - DigiGold does not charge any platform fees.
 - There is a 3% GST charged on the total value of your gold investment.
 - You can pause or stop your Gold SIP at any time.
 - You can redeem your gold units, and the money will be credited directly to your bank account.

Take Small Steps towards a Golden Future

As you've seen, investing in gold through SIP doesn't require a huge sum of money or a deep understanding of financial markets. It's like adding a little bit of gold to your investment portfolio every month. Over time, these small amounts can add up to a large gold reserve. 

Digital gold SIP offers a simple, affordable, and disciplined way to invest in gold. It helps you hedge against inflation, diversify your portfolio, and potentially earn returns.
And the best part? You can do all this from the comfort of your home with DigiGold. Our platform is designed to be user-friendly and hassle-free, making it easy for anyone to start gold SIP online.

So, what are you waiting for? Take the first step towards a golden future today! Sign up with DigiGold and start your SIP gold investment journey. Remember, every rupee you invest is a seed you plant for a prosperous tomorrow.