announced the launch of ‘Shagun SIP’, an industry-first digital systematic investment feature that enables investors to invest in Axis Gold Fund and Axis Silver Fund of Funds (FoF) in terms of grams.
In a regular , investors commit a fixed rupee amount at a chosen frequency. Under Shagun SIP, investors select the quantity of gold or silver they want to accumulate, while the rupee amount changes based on the applicable metal price.
How does Shagun SIP work?
Investors can accumulate up to 25 kg of gold and 50 kg of silver. The underlying schemes of gold FoF and silver FoF invest in high-purity gold and silver—99.5% and 99.9%, respectively.
The process works in five steps:
- Choose a gold or silver FoF: Investors can choose either the Axis Gold Fund or Axis Silver Fund of Fund.
- Set your gram target: Investors need to decide their monthly quantity in grams. For example, 1 gram of gold or 10 grams of silver.
- Pick the date: Investors select a monthly SIP date based on their financial plan.
- Price calculation: The gold or silver price used to calculate the SIP amount is based on T–6, which means six business days before the chosen SIP date. For example, if an investor’s monthly SIP date is the 20th, the applicable gold or silver price will be based on the price six business days before the 20th.
- Automatic investment: Based on the applicable price, the required amount is calculated and debited, after which units are allotted.
How can Shagun SIP help investors?
Shagun SIP allows investors to make regular investments with purchases spread over time. The shift from a fixed rupee amount to dynamic pricing means the investment amount can change with gold or silver prices.
As investments are made across different market levels, investors can average their purchase cost over the investment period rather than trying to time the market at a single price point.
The feature also focuses on goal-based investing. For longer-term goals such as marriage, wealth preservation or education, investors can set a target corresponding to a specific quantity of gold or silver over several years. The system then calculates the required investment amount and creates a personalised plan.
For example, an investor looking to accumulate an amount equivalent to approximately 5 kg of gold over 10 years can use Shagun SIP to make dynamic systematic investments linked to the chosen gram target.
What information will investors see?
Investors will be able to see the exact spot price used, along with its date and time stamp, the rupee amount debited for each cycle, the mutual fund units allotted, and a cumulative grams running total to track their physical-equivalent goal.
Can investors limit the amount debited?
Yes. Investors can set a rupee cap or floor to limit the amount debited in a SIP cycle when gold or silver prices change sharply.
Do investors receive physical gold or silver in Shagun SIP?
No. The holdings accrue as mutual fund units in the investor’s portfolio. The mutual fund units are allotted at the applicable NAV as per standard SEBI and AMC cut-off rules for the chosen scheme.
Is Shagun SIP available now?
Yes. The feature is live on Axis Mutual Fund’s website.
Commenting on the launch, Boniface Noronha, Chief Digital Officer, said, “Gold and silver remain important asset classes for Indian investors, accumulated steadily over time. Shagun SIP, a first-of-its-kind digital feature, is a solution that offers a fully digital, goal-based experience for investors looking to build gold and silver holdings systematically over the long term”.
“Axis Mutual Fund continues to invest in strengthening its innovative digital features and simplifying the customer journey. This is in line with our effort to deliver solutions that are easy to use and relevant across investor segments, regions and stages of life,” he noted.
Disclaimer: This is purely for educational/informational purposes and should not be taken as any sort of investment advice. Always consult a SEBI-registered advisor before making any investment decisions.