Investing in gold has been a trusted method of preserving wealth for centuries. Over the long term, gold has delivered solid returns, averaging around 10% annually over the past 20 years.
In the present day, a systematic investment plan in gold provides an accessible and efficient way to include this precious metal in your investment portfolio. By investing regularly, you can benefit from the power of compounding and mitigate the effects of market volatility.
Exploring gold SIP options
When considering a regular investment in gold, it's essential to understand the different avenues available:
Digital Gold
Digital Gold is an innovative way to invest in gold, allowing you to buy and store gold electronically. This means you can purchase small amounts of gold online, which is then stored securely in insured vaults on your behalf.
Digital Gold is perfect for investors looking for a simple, low-cost entry into gold investment without the need for physical storage. It's ideal for those who prefer the convenience of online transactions and want the flexibility to buy and sell gold easily. You can systematically accumulate gold by choosing a fixed amount at a pre-determined frequency for a selected duration.
Gold Funds
Mutual fund generally offer two options for investing in gold: Gold Exchange Traded Funds (ETFs) and Gold Funds. Gold Funds are essentially funds of funds (FoFs) that invest in units of Gold ETFs, providing an indirect route to gold investment through professionally managed funds. Conversely, Gold ETFs are mutual funds traded on stock exchanges, reflecting the price movements of physical gold.
Since investing in Gold ETFs requires a Demat and trading account, Gold Funds are more suitable for investors who do not have a Demat account . Additionally, Systematic Investment Plans (SIPs) are not available for Gold ETFs, making Gold Funds an ideal choice if you want to invest in gold regularly.
Also Read: Maximising returns with gold investment plans
Wrapping up
A systematic investment plan in gold is an excellent strategy for diversifying your portfolio and securing your financial future. Whether you opt for Digital Gold, Gold ETFs, or Gold FoF, each option offers unique benefits that cater to different investment needs.
With Axis Bank, you can invest in Digital Gold with as little as ₹10. You get 24K gold, safe storage in vaults and transparent buy-and-sell pricing. Explore the options with Axis Bank and take a step towards a secure financial future today.
Disclaimer: This article is for information purpose only. The views expressed in this article are personal and do not necessarily constitute the views of Axis Bank Ltd. and its employees. Axis Bank Ltd. and/or the author shall not be responsible for any direct / indirect loss or liability incurred by the reader for taking any financial decisions based on the contents and information. Please consult your financial advisor before making any financial decision
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