Axis MF Gram SIP: Invest in Gold by Weight Now

Axis Mutual Fund launched India's first gram-based SIP for gold and silver fund of funds. Instead of investing a fixed rupee amount, you choose how many grams of gold or silver to accumulate each month — a first in the mutual fund industry.

Here's what happened: Axis Mutual Fund launched 'Shagun SIP', India's first gram-based SIP allowing investors to pick a gold or silver quantity (e.g., 1 gram/month) instead of a fixed rupee amount.. The SIP invests in Axis Gold FoF and Axis Silver FoF, which hold underlying ETFs — meaning no physical storage risk and standard mutual fund taxation applies.. The monthly debit amount fluctuates with prevailing gold or silver prices, so investors accumulate a consistent weight rather than a consistent rupee investment..

What you should do: Check your mandate limit: since the debit amount floats with metal prices, ensure your bank account auto-debit limit is set higher than the current monthly cost to avoid SIP bounce.. Compare taxation before investing: gold/silver FoFs are taxed as debt mutual funds (slab rate for under 3 years; 20% with indexation post 3 years) — factor this against Sovereign Gold Bonds if your horizon is 5+ years.. Define a weight goal before starting — Shagun SIP makes most sense when you have a target like '50 grams for a wedding' rather than a general wealth-building goal where rupee-cost averaging works just as well..

Gold FoFs held for over 3 years qualify for indexation benefit, which can significantly reduce your effective tax — but Sovereign Gold Bonds still offer 2.5% annual interest plus capital gains tax exemption on maturity if bought from RBI.