Few months ago, my friend opted a new investment item. He started investing in Gold through monthly SIP. I was not aware of the plan, but seeing the inflated Gold prices he started an SIP in purchasing Gold. The scheme was was bot available in any stock exchange but the SIP option was availed in a Jewellery showroom. Recently, he went onto reimburse the value only 3nding up paying little extra.
SIP i.e Systematic Investment Plan is one of the most favoured investment option in India. If a person is unaware about the equity or stock market he / she could easily opt for SIP, where a fixed amount of money will go in buying up the little stock qty. It is considered to be one of the least risk involved in investing. Many people have there running SIP, where a fixed amount goes out in buying some equity. Likewise, the jewellery showroom in India too wooing the customer to initiate a SIP way of buying #gold. In this scheme with every monthly amount the equivalent amount of gold is accumulated in the customer account.
The date on which SIP will trigger, the equivalent amount of #gold will be purchased and credited to customer account. My friend did a SIP of INR 10k. The scheme runs for only 10 months. And it solely depends upon the fluctuating market prices. In last 10 month, he accumulate closed to 7.75 Grams of #gold through monthly SIP. I am sure he was in loss because the gold prices have plunged recently. However still he is in profit as his INR 100,000 *(10k for 10 month) valued at INR 103250 as per today's good rate. A profit of 3250 in total. However there is a catch in this scheme, rather than getting the value in cash, the customer has to buy some products from the showroom equivalent to the quantity accumulated. Means my friend could buy Gold upto 7.75 Grams or pay anything over this quantity. Buying Gold has beverages been easy and that is why he took me to the store to suggest some ideas. He is not a good digger but like to try on different investment option. This SIP in physical gold too was his an option.
But rather than getting the value, he has to come tent with buying physical gold. After scrutinising on various item, he ended up buying a ring for himself. I think this option is good if someone unable to buy Gold in one gold. By slowly accumulating monthly and then buying an item from the store will help them in stacking some physical Gold. He seems to be happy with this buy, although somewhere he felt that equivalent investment im stock would have given higher returns. May be he will trying doing that next time.
In good faith - Peace!!
