How Axis Mutual Fund's new 'Shagun SIP' feature works
What's the story
Axis Mutual Fund has launched a new digital feature called 'Shagun SIP,' aimed at systematic investment in gold and silver. The innovative facility, which went live today, lets investors set their investment goals in grams instead of monetary terms. It is available for investments in Axis Gold Fund and Axis Silver Fund of Fund.
Investment strategy
Goal-based systematic investment
The 'Shagun SIP' feature adds a goal-based dimension to a traditional systematic investment plan (SIP).
Investors can now choose how much gold or silver they want to accumulate and over what period.
The system then calculates the required investment based on current metal prices.
For example, if an investor wants to build an equivalent of five kg of gold over 10 years, this feature would let them do so gradually through systematic investments.
Investment benefits
Digital solution to accumulate precious metals
The 'Shagun SIP' feature provides a digital solution to accumulate physical precious metals over time, without worrying about storage, security, and purity.
Axis Mutual Fund has said that investors can set accumulation targets of up to 25kg for gold and 50kg for silver through this feature.
However, it's important to note that investors aren't directly buying physical gold or silver through this platform.
Digital innovation
Here's what CDO said
Boniface Noronha, Chief Digital Officer at Axis Mutual Fund, said that gold and silver are important asset classes for Indian investors.
He added that these are often accumulated gradually 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," Noronha said.