Gold has always held a special place in Indian households and investment portfolios. It’s not just a symbol of prosperity but also a dependable asset during uncertain times. However, with gold prices climbing steadily, investing in large quantities upfront can be difficult for many.
That’s where Systematic Investment Plans (SIPs) in Digital Gold offer a smart alternative, allowing you to invest small amounts regularly and build your gold holdings gradually over time.
What Is a Digital Gold SIP?
A Digital Gold SIP works much like a mutual fund SIP. You invest a fixed sum at regular intervals daily, weekly, or monthly and the equivalent value in gold (based on the current market price) is credited to your digital gold account.
For example, if you invest ₹500 every month, the platform will purchase ₹500 worth of gold at that month’s prevailing rate and add it to your digital vault.
Why Use SIPs to Buy Digital Gold?
- Affordability
You don’t need a large lump sum to start. Many platforms offer SIPs starting from as low as ₹10 or ₹100, making gold investment accessible to students, salaried individuals, and first-time investors. - Price Averaging
Gold prices move daily. SIPs help you average out the cost buying more when prices dip and less when they rise which reduces the impact of market volatility over time. - Financial Discipline
Automated, regular investments encourage consistency and long-term wealth-building. You don’t have to time the market just stay invested. - Liquidity and Purity
Digital gold is backed by 100% 24K pure gold and securely stored by trusted vaulting partners. It can be sold instantly or even converted into coins or jewellery on select platforms.
How to Start a Digital Gold SIP
- Choose a Reliable Platform
Opt for trusted names like SafeGold and MMTC-PAMP that comply with SEBI guidelines and offer secure, transparent services. (Digital gold is available on InCred Money!) - Set Your Investment Amount & Frequency
Pick how much you want to invest (e.g., ₹100, ₹500, ₹1,000) and how often monthly, weekly, or daily based on your financial comfort. - Link Your Payment Method
Set up auto-pay using UPI, debit card, or net banking so your SIP runs smoothly and automatically. - Track and Manage Your Holdings
You can view your gold balance in grams and rupees. Most platforms let you pause, resume, or modify your SIP anytime.
Key Things to Keep in Mind
- Charges: Platforms may apply a small spread (buy/sell price difference) or withdrawal fees.
- Conversion Options: Planning to convert your digital gold into jewellery? Ensure your platform offers delivery or tie-ups with jewellers.
- Taxation: Digital gold is taxed like physical gold — 20% with indexation benefit if held for over 3 years.
Who Should Consider a Digital Gold SIP?
Young investors starting with limited capital. People saving for future gold expenses (e.g., weddings, gifts). Anyone seeking a small but consistent hedge against inflation.
Investors who want liquidity without compromising on asset quality
Final Thoughts
A Digital Gold SIP blends tradition with technology making it easier to accumulate gold without straining your finances. It offers a disciplined, low-effort, and budget-friendly way to invest in one of the world’s oldest and most trusted assets.
Whether you’re saving for future needs or diversifying your portfolio, SIPs in digital gold offer a secure and flexible path to long-term wealth creation.
Ready to go for gold? Start your digital gold journey today on InCred Money.
Source: FundsIndia
