Investing in gold and silver through a Systematic Investment Plan (SIP) in India is a smart way to accumulate precious metals over time. Here’s how you can do it:
- Gold & Silver Mutual Funds (Fund of Funds)
Invest in mutual funds that put money into gold or silver ETFs.
- Start with as little as ₹100-₹500 per month
- No demat account needed
- Liquidate anytime, with money credited to your bank account
- Popular options: SBI Gold Fund, HDFC Gold Fund, ICICI Prudential Gold Fund
- Gold & Silver ETFs
Invest in ETFs through a demat account
- Lower costs compared to Fund of Funds
- Trade throughout the day at live market prices
- Popular options: Nippon India ETF Gold BeES, HDFC Gold ETF, ICICI Prudential Silver ETF
- Digital Gold & Silver Platforms
Invest in digital gold and silver through apps like Paytm, PhonePe, or Google Pay
- Invest as little as ₹1
- Physical delivery available
- Watch out for GST and spreads
Key differences:
- Demat account needed for ETFs, not for Fund of Funds or digital platforms
- Costs vary: expense ratios, brokerage, GST, and spreads
- Taxation: 12.5% LTCG tax for ETFs and Fund of Funds (held >12 months)
