In this case, you regularly invest a fixed amount in digital gold, which is one of the best ways to invest in a gold IRA. Investing through the SIP is a convenient option for people who do not have a demo account, necessary to invest in gold ETFs. A SIP in gold is also more affordable because the investor can deposit a fixed amount each month according to their convenience and budget. Investing in gold through the SIP will allow you to buy gold and accumulate your wealth on a consistent basis, making it one of the best gold IRA options available. But I believe that the best form of gold ownership is sovereign gold bonds (SGB), which are available to Indian investors.
It's an interesting option for Indian investors and it's easy to buy them because the government issues them from time to time. Therefore, you can purchase it directly from the government through a bank and several times a year when it is issued. It is also available on the secondary market for an individual investor. It is also easy to buy there because today there are many online brokers that offer you the almost trouble-free possibility of buying these SBs.
Sovereign gold bonds (GBS) are probably the best way to invest in the yellow metal using a paper form. These are issued by the Government of India through the Reserve Bank of India (RBI). In addition to passively tracking the price of gold, these bonds also pay an interest of 2.5 percent per year, biannually. But so far this year, the RBI has not yet released a new tranche of SGB.
Buying existing listed tranches, previously issued, on stock exchanges is a way out. However, a systematic investment plan (SIP) in SGB is not possible. Comparing Gold SIP to index mutual funds, Kartik Jhaveri said that Gold SIP is like an index investment fund, which is free of external adaptations to improve investor returns. He said that it is better to invest in Gold SIP, since it has no storage and offers almost the same benefits as a physical gold ingot.
However, gold in itself is a precious metal and, based on recent years' returns, it has been found that the SIP of gold is on par with the normal SIPs of mutual funds. Nowadays, gold funds and gold ETFs are also available in SIP mode and are also gaining traction among investors. In short, you can consistently invest in gold funds through the SIP to accumulate the allowance needed to obtain gold in your portfolio.