
Investing in gold SIP has long been a dream and request of many Indian retail investors and now with the e-series products, this option is getting fulfilled.
Now one can invest in Gold, Silver, Copper, Lead, Zinc and Nickel every day, week or month or whenever he/she desires using the Systematic Investment Plan (SIP) available in e-series products of National Spot Exchange (NSEL). Investors can invest e series products through SIP via regular online trading platform of NSEL or alternatively contact your broker for the same.
Positioning of the e series products like e gold or e silver etc., is the first investment product in the industry which opens a new avenue for investing in gold or silver via SIP as an asset class.
It is meant for those of who don’t track markets regularly so SIP in series products is the best way for your investments. Even if we track markets regularly, we usually find it difficult to gauge the bottom when the markets are going down.
Suppose you are planning to invest in Gold regularly, there is no better way than e gold in comparison to gold ETFs.
This investment technique of SIP in e series products enables the following benefits:
• Small investments: A simple way to enter the market by investing small amounts. Small but regular investments go a long way in creating wealth over time. Investors can get the best advantage in investing in e gold or other e series products via the SIP route which otherwise is not fully possible with any other options that you can buy gold like jewellery, bullion, gold coins, ETFs, commodity exchange, etc.
• Regular saving habit: Perhaps the best benefit of setting up a SIP is that it forces to set apart some money every time frame and enforces saving discipline. One could argue that this can be done without a SIP also but just that automation enforces a little more rigor.
• Rupee cost averaging: Fewer units during rising markets and more units during falling markets, thereby reduces the average cost per unit. Through SIP, an investor can get the advantage of rupee-cost averaging, which is its unique feature. It means that when gold prices go down, the fixed SIP installments will buy more units and vice-versa, and since the installments are made at different points of time and at different net asset values, the purchase price of units averages out over the investment period.
• No need for ‘timing the markets’: No need to select the right time and quantity to buy and sell as timing the market is time consuming and risky. It eliminates the need to actively track the markets. This in turn will enables to invest regularly rather than try to time the market, which not many small investors can do successfully.
• SIP lead to building wealth: Good saving and investing habits are more likely to help to accumulate wealth in the long run.
• Liquidity: offers excellent liquidity as you can redeem this fund and immediately get cash within 2 days or redemption.
• Purity guarantee: investors can be assured of the purity of buying such gold.
• Flexibility: of adding more units and ease of investing in gold without storage or safety hassles.
With gold also turning a lot more volatile in the past few months, investors would be able to capture the movements better through an SIP. It is more of a convenience product. The idea is to set apart a sum every week or month or quarter, and use that to buy units of a particular e series product like e gold or e silver etc, regardless of its price.
Investors would like such a system because it helps them save regularly and build up an investment. Doing SIP will get the benefit of averaging the cost and not being bothered by ups and down in the prices on the other hand SIP gives us the power of compounding the returns and it serve as a good tool to counter inflation.
For more information on e-series visit http://www.nationalspotexchange.com
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