Wealth is just a Gold SIP away! A way forward for gold investors today

Gold SIP: In Physical gold, one has to bear at least 5 per cent depreciation, which one can save if he or she has invested in Gold SIP.

Gold SIP: Gold Mutual Funds via SIP are expected to give at least 1.5 per cent to around 3 per cent extra returns than the physical gold market. Photo: Pixabay

Gold SIP: With the global economy slowing down, a question that the general public is left asking is where to invest their money? Today, the equity mutual fund market is volatile, the gold prices have soared and real estate is in any case out of the question. Yes, it has become difficult for the general masses to find a safe investment option, especially for the middle-classes.

However, situations like this give way to newer innovative investment options and one such option is SIP investment in gold. The SIP option for gold works similar to the one in mutual funds but is more flexible in terms of tenure and investing amount. You can start your investment from as low as Rs 1000 for minimum of one year. You can accumulate Gold or Silver in a disciplined manner and get it delivered anytime during your tenure as per your convenience.

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Speaking on Gold SIP investments and returns that investors can expect, Jitendra Solanki, a SEBI registered tax and investment expert decoded the entire thing and said, "Gold SIP gives almost same returns that the physical gold gives in the same time frame. However, as per the trends, it has been found that it is better to invest in Gold SIP than in physical gold as it helps an investor to manage one's portfolio easier as it can be bought or sold with a single click and there is no depreciation cost involved while selling the gold SIP." Solanki said that in Physical gold, one has to bear at least 5 per cent depreciation, which one can save if he or she has invested in Gold SIP.

"Gold Mutual Fund SIP are of two types — DSP World Gold Fund that is directly related to the world gold stock and its deviation while other is normal Gold Mutual Fund which is managed by the fund managers. Since fund managers job is to outperform the normal market returns, Gold Mutual Funds or SIP are expected to give at least 1.5 per cent to around 3 per cent extra returns than the physical gold market," concluded Jitendra Solanki.

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