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Gold SIP in India: How to Start, Where to Invest & Benefits Explained
By Jupiter Team · · 3 min read
Gold has long been a trusted asset for Indian investors. With the rise of digital investment platforms, you no longer need to buy physical gold in bulk. Instead, you can start a Gold SIP - an affordable, flexible, and smart way to accumulate gold over time. Let’s dive in!
What is Gold SIP?
A Gold SIP (Systematic Investment Plan) is a method of investing small, fixed amounts regularly—typically monthly—into gold. Just like mutual fund SIPs, Gold SIPs allow investors to benefit from rupee cost averaging, without worrying about timing the market.
You invest either a fixed rupee amount or buy a fixed quantity of gold (in grams), and accumulate digital gold, Sovereign Gold Bonds (SGBs), or Gold Exchange-Traded Funds (ETFs) over time.
‘Gold SIP’ in some of the Indian Languages
How to Explain ‘Gold SIP’ to Kids?
Imagine buying a small piece of gold every month instead of saving for a big bar at once. That’s what a Gold SIP does. It helps you collect gold gradually and safely, without spending a lot at once.
Example:
Let’s say you want to buy a PlayStation that costs ₹55,000. But you don’t have all that money right now. So instead of waiting and saving randomly, you decide to save ₹4,500 every month. In 12 months, you’ll have ~₹54,000. Simple, right?
Now replace the console with investing money to grow more money by investing in Gold. That’s where SIP comes in.
SIP full form - Systematic Investment Plan. SIP is like putting a small fixed amount of money into an investment scheme every month or fixed time period.
Types of Gold SIPs in India
- Digital Gold SIP
Buy gold in digital form (stored safely by the provider). No demat needed. - Gold ETF SIP
Invest in gold ETFs via mutual fund platforms. Traded on the stock exchange.
Benefits of Investing in Gold via SIP
- Affordability: Start with as little as ₹100/month
- Price Averaging: Reduces the impact of market volatility
- Digital Convenience: Buy and track online, no need to store physical gold
- Long-Term Growth: Suitable for saving towards weddings, gifts, or future goals
- Diversification: Hedge against inflation and equity market risks
Digital Gold SIP vs Gold ETF
How to Start a Gold SIP Online
You can begin your gold SIP in a few minutes using any of the following platforms:
- Jupiter Money (SafeGold/ MMTC-PAMP)
- Jar App
- MobiKwik
- Paytm Gold
- Groww
- Zerodha
- Kuvera
- PhonePe (SafeGold/ MMTC-PAMP)
Steps:
- Choose your preferred gold investment type (Digital Gold or ETF)
- Select the investment amount (e.g., ₹500/month)
- Choose frequency (monthly, weekly)
- Complete KYC (if needed)
- Set up auto-debit or reminders
Taxation on Gold SIP Investments
- Digital Gold: Treated like physical gold—capital gains apply.
- Gold ETFs: Eligible for long-term capital gains (LTCG) with indexation after 3 years.
Risks & Things to Consider Before Starting Gold SIP
- Volatility: Gold prices fluctuate. SIP smoothens this but doesn’t eliminate it.
- Liquidity in SGBs: Lock-in period may not suit short-term investors.
- Platform Credibility: Stick to RBI-approved apps and SEBI-regulated platforms.
- Taxation Confusion: Each investment type has different tax rules. Do read those carefully.
FAQs
Q1. What is Gold SIP?
Gold SIP is a way to invest small amounts in gold regularly—monthly or weekly—just like a mutual fund SIP.
Q2. What are the benefits of a Gold SIP?
You can accumulate gold affordably, average out cost, and invest digitally without needing physical storage.
Q3. Can I do SIP in Sovereign Gold Bonds?
Yes, through platforms like Zerodha, Groww, and Kuvera that offer SGBs in SIP mode.
Q4. Is Gold SIP better than buying physical gold?
Yes, because it eliminates storage risks, is more flexible, and may offer tax benefits.
Q5. Where can I start a Gold SIP?
Use platforms like Jupiter where you can get started with as low as ₹10 and other platforms like Jar, Paytm, Groww, Zerodha, and PhonePe.
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