SIP in Gold ETFs – Gold Savings Funds

A disciplined mutual investor tries to invest through SIP (Systematic Investment Plan) to beat market volatility and for rupee cost average. For those of you who don’t track markets regularly SIP is the best way for your mutual fund investments. Even if we track markets regularly, we usually find it difficult to gauge the bottom when the markets are going down.

If you are planning to invest in Gold regularly, there is no better way than gold ETFs. However, unlike normal open ended mutual funds gold ETFs don’t offer SIP facility for investments as they are traded like stocks on the exchanges. But if  you want to choose SIP route for gold investments there is an indirect way. As of now three fund houses have come up with Gold Savings Funds which offer SIP facility. 

Gold ETF SIP

Gold ETF Fund SIP

Gold Savings Funds, as I have written a number of times, invest the pooled money in Gold ETFs. Since your aim is to invest in Gold ETFs and Gold Savings Funds also do the same thing, it’s a good idea to enter into SIP of a Gold Savings fund.

You can choose one of the below gold Savings Funds

Quantum Gold Savings Fund

Kotak Gold Savings Fund

Reliance Gold Savings Fund

The advantage with Gold Savings Funds is you don’t need to open a demat account and it also allows you to invest through an SIP. The down side is the expenses the fund house charge would be relatively high when you compare it with Gold ETFs.

In a nutshell I would recommend this.

Those who already have Demat Accounts, can directly invest in Gold ETFs regularly at your convenient time.

Those who don’t have a demat account and want to invest only in Gold ETFs (I mean no plans of playing in stock market), better go with Gold Savings Funds SIP route.

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Related posts:

  1. Quantum Gold Savings Fund
  2. Kotak Gold Savings Fund – Info
  3. Reliance Gold Savings Fund – Is it a Best Bet?
  4. Best way to Invest in Gold – Gold ETFs
  5. Gold ETFs list – Gold ETF funds list in India

{ 15 comments… read them below or add one }

Stock Market July 13, 2011 at 11:29 am

Well written information you wrote it very clean its easy to understand and make out the details. thank You.

Reply

hitendra July 17, 2011 at 5:40 pm

i want to invest in gold but i do not know how to invest.please help me.

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hira07 April 15, 2012 at 6:44 am

PLEASE GO TO YOUR SHARE BROKER OR BUY ON LINE TRADING LIKE SHARES , IT IS NOTHING BUT TRADABLE LIKE SHARES.

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MUTHUKUMAR PARANJOTHI July 24, 2011 at 8:20 am

Pl advise me what are the options to invest in gold for safe and best returns

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Sathish Emmadi July 24, 2011 at 1:00 pm

Hi Hitendra & Muthukumar,

As mentioned in the article, if you don’t have demat accounts and not investing big amoount, better option is gold savings funds.

Reply

Nand kumar July 29, 2011 at 7:41 am

Pl. advice me what are the option to invest in gold for safe and best return time period not boundation

thanks
Nand kumar allahabad

Reply

Sathish Emmadi July 29, 2011 at 9:56 am

Hi Nand Kumar,

Best option is Gold ETFs. If you have a demat account buy any one of the gold ETFs just like a stock.

Reply

PRADEEP MULEY September 2, 2011 at 4:41 pm

I AM INTERESTED IN INVESTING GOLD THROUGH ETF, PLEASE GUIDE HOW TO PROCEED?

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Sathish Emmadi September 20, 2011 at 5:13 pm

Hi Pradeep,

Please open a demat account, then you can trade in gold ETFs just like any other stock

Reply

manoj gaba January 2, 2012 at 4:21 am

dear sir,
if i can make online sip etf. investment. and what is its procedure

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Sathish Emmadi January 2, 2012 at 1:59 pm

Please visit any of the mutual fund websites. First time you need to submit documents by post/by walking out to the office.

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thirunagari February 1, 2012 at 5:45 pm

I don’t have a demat account .i want to invest in gold by month wise from my salary.which one is beeter can you suugest please.

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Sathish Emmadi February 6, 2012 at 11:22 am

Hello, Please vist the below link.

http://www.goldetf-funds.com/sbi-gold-fund

Reply

Kasim February 24, 2012 at 8:14 pm

Pls Need more details on people from Nigeria will register with you.

Reply

Baskar March 8, 2012 at 10:41 pm

Hi,
What is the diff. between gold etf, gold sip, e-gold (nsel), I am already having account in nsel, so which is the best way to save gold.

Reply

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