Reliance Mutual Fund launches first SIP in gold

Reliance Mutual Fund today launched India's first systematic investment plan (SIP) in Reliance Gold Savings Fund, wherein premium will be made on a monthly basis.

CEO of Reliance Capital Asset Management Sundeep Sikka said it was the first SIP in gold introduced in the domestic mutual fund industry aimed at helping investors to accumulate the yellow metal in small amounts regularly.

Sikka said that in line with the growing gold investment demand, coupled with India's culture for buying gold, "We are introducing SIP in Reliance Gold Savings Fund. This is aimed at cultivating a regular savings habit among investors to accumulate gold in small amount through the SIP mode."

The fund allows small regular investments as low as Rs 100 per month and in multiples of Re 1 thereafter.

According to Sikka, Reliance Gold Savings Fund is the only fund in the market which will enable investors to invest in gold in a paper form without the need of a Demat account as it provides the facility to invest through online medium and physical application mode.

He said that the new fund offer was a convenient way to diversify investment portfolio and reap the returns of gold from a long-term perspective.

To a query, he said the fund enables the investor to avail long-term taxation benefits from first year.