Shagun SIP: A Systematic Way to Invest in Gold and Silver

Mrs. Kamakshi Sridharan

C0- Founder, Walletwealth.co.in Cell: 87545 30812

ARN 173466

For generations, Indians have had a simple way of accumulating wealth: buy a little gold whenever there is some money left over.

Consider Ramasamy, who wanted to build a gold reserve for his daughter’s wedding. Instead of waiting until he had a large sum, he bought small quantities whenever he could afford them. One month it was a ring; another month, a small gold coin. He continued this habit for years. Eventually, those modest purchases became a meaningful store of wealth.

His experience highlights an important investment principle: wealth need not always be built through large, one-time investments. Consistency can also play a powerful role.

Taking this familiar habit of accumulating precious metals into the digital investment space, Axis Mutual Fund has introduced ‘Shagun SIP’, a facility designed to enable systematic accumulation of gold and silver.

Starting Small, Building Gradually

The most notable feature of Shagun SIP is that investors can begin accumulating gold and silver from one gram through a systematic investment approach.

This is particularly relevant for investors who may find it difficult to set aside a large amount for a single purchase. Instead of waiting for a suitable opportunity to make a substantial investment, they can invest smaller amounts at regular intervals.

The concept is similar to the discipline behind a systematic investment plan. Rather than trying to predict the best time to buy, the investor follows a predetermined investment pattern.

Over time, this approach can help develop an investment habit while reducing the dependence on making a large investment at a single point in time.

Gold and Silver Through Mutual Fund Schemes

Shagun SIP facilitates investment in Axis Gold Fund and Axis Silver Fund of Fund.

Gold and silver prices can fluctuate considerably. Regular investing means purchases are made at different price levels. As a result, the investor does not have to depend entirely on the price prevailing on a single day.

However, systematic investing does not eliminate market risk. If the price of gold or silver declines, the value of the investment can also fall. Therefore, investors should not assume that regular investment automatically guarantees profits.

The objective should be disciplined accumulation and diversification rather than attempting to make quick gains from movements in precious-metal prices.

How Much Can an Investor Accumulate?

According to information provided by Axis Mutual Fund, the Shagun SIP facility allows investors to accumulate up to 25 kilograms of gold and 50 kilograms of silver.

The underlying gold is stated to have a purity of 99.5%, while the silver has a purity of 99.9%.

Shagun SIP at a Glance

Feature	Details
Investment approach	Systematic investment
Minimum accumulation	1 gram
Gold option	Axis Gold Fund
Silver option	Axis Silver Fund of Fund
Maximum gold accumulation	25 kg
Maximum silver accumulation	50 kg
Gold purity	99.5%
Silver purity	99.9%
Mode	Digital

A Digital Alternative to Physical Gold

One of the challenges associated with physical gold is safe storage. Gold jewellery and coins need to be protected against theft and loss. Investors may also incur locker charges if they choose to store their valuables in a bank locker.

There are other considerations too. Jewellery involves making charges, while questions about purity and resale value can arise when purchasing physical gold.

A digital investment route changes the nature of the investment. The investor does not have to purchase jewellery or keep physical gold at home. The investment is maintained through the financial system, making the process more convenient for those who prefer a digital approach.

That said, investors should understand the structure of the particular fund and the costs involved before investing.

Why Gold and Silver Deserve a Place in a Portfolio

Gold has traditionally played an important role in Indian households. Beyond its cultural significance, it is often considered a diversification asset and a potential hedge during periods of economic and market uncertainty.

Silver has a somewhat different investment profile. Apart from its role as a precious metal, it has significant industrial applications. Demand from industries such as electronics, solar energy and other manufacturing segments can influence its long-term prospects.

This difference makes gold and silver interesting from a portfolio-diversification perspective. However, their roles should be viewed within the context of an investor’s overall asset allocation.

Gold and Silver: Different Roles

Gold	Silver
Traditionally viewed as a store of value	Both precious metal and industrial commodity
Strong cultural significance in India	Greater dependence on industrial demand
Often used for portfolio diversification	Generally more volatile than gold
Can act as a defensive asset	Offers potential diversification but carries higher price fluctuations

Don’t Let Precious Metals Dominate the Portfolio

The introduction of a convenient gold-and-silver investment facility does not mean that investors should put a large portion of their wealth into precious metals.

A sound financial plan should be built around asset allocation. Equity-oriented investments can play an important role in long-term wealth creation, while fixed-income investments can provide stability and predictable income. Gold and silver can potentially complement these investments by adding diversification.

The appropriate allocation depends on factors such as age, financial goals, investment horizon, income stability and risk tolerance.

For many investors, precious metals may be better viewed as a supporting component of a diversified portfolio rather than the core of the portfolio.

The Bigger Lesson: Investment Discipline Matters

The real attraction of Shagun SIP may not simply be the ability to accumulate gold or silver from one gram. Its larger significance lies in encouraging investors to adopt a disciplined savings habit.

Many people postpone investing because they believe they need a substantial amount of money to get started. A systematic approach challenges that mindset.

Whether the investment is in equity mutual funds, fixed-income instruments or precious metals, the underlying principle remains the same: start with what you can afford, invest regularly and stay focused on your financial goals.

As Boniface Noronha, Chief Digital Officer of Axis Mutual Fund, has noted, gold and silver continue to hold an important place among Indian investors. Digital facilities such as Shagun SIP seek to combine this traditional preference for precious metals with the convenience of modern investing.

A New-Age Approach to an Old Habit

Indians have been accumulating gold for centuries. What is changing is not necessarily the desire to own precious metals, but the way investors can gain exposure to them.

Shagun SIP brings the familiar idea of “buying a little gold regularly” into a structured digital investment environment. For investors who want to accumulate gold and silver systematically without dealing with the storage and other practical issues associated with physical metals, it could offer a convenient alternative.

However, convenience should never replace due diligence. Before investing, investors should understand the scheme structure, expenses, taxation, risks and liquidity, and assess whether the investment fits their overall financial plan.

Gold and silver can be useful portfolio diversifiers, but they are not substitutes for a well-planned investment strategy. The real key to long-term wealth creation remains disciplined investing, appropriate asset allocation and patience.

For more details and Investing