Gold Systematic Investment Plan (SIP) is a mode of investing a fixed amount regularly into digital gold. It allows an investor to buy digital gold on a regular basis on a specific date of every month, quarter or year. It allows investors to invest in the asset according to their convenience and budget. This encourages investors to make disciplined investment in gold. Investing in gold through SIP helps investors accumulate gold and build wealth in a steady manner.
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What are the benefits of Gold Systematic Investment Plan (Gold SIP)?
The benefits of Gold Systematic Investment Plan (SIP) are given as follows:
- It instils investment discipline in investors: To get the best out of your investment, it is important to maintain focus and dedication towards it. Often, investors start investing with a lot of enthusiasm, which soon fades and so does their investment plan. They fail to regularly invest towards building a regular investment corpus. Gold SIPs force investors to maintain a regular investment scheme.
- It is easier to maintain in the long run: Long-term gold investments yield results better than short-term gold investments. People planning to invest in gold for long-term must go for Gold SIPs instead of lump-sum investments. Especially those who have yet to learn an investment discipline need to invest in digital gold through Gold SIPs.
- It relives investors from the hassle of timing the market: Investors are always on the lookout for the right time to invest in gold. Like other investment instruments, gold is also unpredictable. With the help of Gold SIP, investors don’t need to monitor gold rate volatility. Since it is a periodic investment, it will occur across all market cycles irrespective of the gold rate movements.
- It gives the benefit of cost averaging: Rupee Cost Averaging (RCA) is one of the important reasons why investing in gold through Gold SIP plan or scheme must be considered by investors. Investing a fixed sum of money regularly towards an investment instrument allows you to buy digital gold when the investment rate is lower. This reduces the average cost of purchasing the financial asset over time. Keeping long-term investment approach in mind, the rupee cost averaging can neut ralize market fluctuations, allowing investors to gain maximum benefits on their investments over time.
- It offers the power of compounding: To be a successful investor, it is better to start as soon as possible. Since an investment and its returns are based on the power of compounding, investors starting out early can earn returns higher than someone who started out later. Gold SIP in India does not look for a large investment. Users can start investing with a low amount each month depending on their finances. A best Gold SIP plan will allows them to start investing early in life.
- It provides investment convenience: Gold SIP or Gold Systematic Investment Plan is systematic in nature. It allows investors the benefit of investing in small denominations regularly without any trouble. To get started with this facility, all investors have to do is send a one-time instruction to their banks to auto-debit the investment amount regularly at a date pre-decided by the investor. This relives investors from constant worry about missing out on their gold investment.
- It allows investors to make investment in small denominations: Gold SIP investment in India offers a number of other benefits that make investing in gold convenient and profitable. One can start investing in a systematic investment plan in small denominations. This benefit allows and encourages even those people who earn low salaries to make an investment. This micro-investment option gives freedom to people with low income to invest in gold without feeling the pinch of a lump-sum investment.
What is a Gold SIP Calculator?
Gold SIP Calculator is an online tool that helps investors to calculate how much SIP they need to invest to get a desired amount of digital gold. It helps you estimate the approximate amount of systematic investment plan that needs to be saved periodically. Returns from investments in SIP vary with the nature of investment, tenure of investment and risk profile of the investments. A Gold SIP Calculator calculates the required amount of SIP to be saved based on the inputs given by the investor.