SIP in Gold - Should you go for it in 2025?

Q: Is SIP possible in gold ETF?

Factors such as global market trends, exchange rates, inflation rates, economic stability, and government regulations influence 1 gm gold prices.

Q: Gold mutual Funds vs digital gold, which is better?

From returns perspective both provide similar returns i.e., depending on gold price appreciation. The difference comes due to the extra charges both assets incur. Gold mutual Funds charge an expense ratio every year, while digital gold incurs a one time GST charge during investment. So, gold mutual funds generally provide higher returns in the short term while digital gold shines in the long term. Please note, this comparison is solely from returns perspective. If you want your saved gold physically at any point of time in the future, gold mutual funds can't be converted to physical gold while digital gold can be redeem as physical as well

By Team Gullak

Last updated : Nov 6, 2025

5 min read

What is SIP in Gold?

A SIP in Gold (Systematic Investment Plan in Gold) is a method of accumulating gold gradually by investing a fixed amount at regular intervals, usually daily, weekly or monthly, instead of making a one-time bulk purchase.

What are the advantages of SIP in Gold?

If you're thinking if SIP in gold is good, here are the benefits:

Gold accumulation over time: Today, Gold prices are around ₹1 lakh per 10 gms, making large purchases challenging for most people. A SIP in gold lets you accumulate it gradually through small daily, weekly, or monthly contributions. On apps like Gullak, you can start with as little as ₹100 a day.
Cost averaging: Buying Gold at a regular interval with SIPs helps you average out price fluctuations.
Structured way of accumulation Gold: With one time purchases people often miss out on buying gold. With SIPs in Gold, you don't need to build a habit, they do the work for you.
Goal-linked Planning: With SIPs in Gold on apps like Gullak, you can choose goal-specific SIPs. For example, you can select your goal as let's say, child's wedding. Now, based on the estimated amount required, the plan will show you how much SIP you need do to achieve that goal. Similarly, you can start SIPs for multiple other goals you might have.
More flexibility: With Gold SIPs you can change your SIP amount, change between daily/weekly/monthly SIPs, pause anytime and redeem anytime. With one-time purchases of physical gold, this kind of flexibility isn't possible.

Let's try to understand the impact of SIP in Gold with a Gold SIP calculator:

Lumpsum

Daily SIP

Weekly SIP

Monthly SIP

Select Lumpsum amount

₹

Select time period

Years:

Gold Price Appreciation

Returns

Digital Gold

1,68,505.82

Invest in the Best Gold SIP

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What are the different Gold SIP Schemes?

Primarily there are 4 types of Gold SIP schemes:

Digital Gold
Gold leasing
Jeweller schemes
Gold ETFs and Mutual Funds

In this section we'll understand these in detail.

Digital Gold: Here, your Gold gets invested into a digital form of physical gold. When you start SIPs in digital gold, you are essentially buying physical gold which is stored in insured vaults at a Gold refinery. You don't have to hold the gold physically and can can redeem the gold anytime as cash, gold coins, jewellery at top jewellers(with apps like Gullak). Minimum investments start at just ₹10. The returns here are proportional to Gold's annual returns.
Gold leasing: Gold leasing provides you with extra 4-5% gold every year on top of Gold's annual returns. Here, your gold quantity also increases every year and the overall quantity benefits from gold price appreciation. Like digital gold, you can redeem as cash, gold coins or jewellery. Minimum SIP in Gold leasing starts at ₹100/day. Read more about gold leasing here.
Jeweller schemes: These are gold schemes where you make monthly SIPs at jewellery stores(generally for 11 months). At the end of the tenure, you can redeem jewellery or gold coins & claim discounts on the jewellery making charges. Generally SIP in jewellery schemes start from ₹500/month. Read more about jeweller schemes here.
Gold mutual funds: Gold mutual funds invest in gold stocks, physical gold, or stocks of gold mining companies. Here, you can only withdraw as cash since there's no physical gold involved. The returns are equivalent to that of gold price appreciation. Minimum SIP amount depends on the fund you choose but they often start at ₹100.

Which SIP in Gold is the Best?

To choose the Best SIP in Gold for you we need to analyse & compare them under the following criteria -

Where do they invest
Returns Potential
Minimum investment
Modes of withdrawing
Flexibility

Let's compare the Gold Assets discussed above to understand the Best SIP in Gold for you.

Table: Best SIPs in Gold compared

Criteria	Digital Gold	Gold leasing	Jeweller schemes	Gold mutual funds
Where do they invest	Underlying asset is digital gold	Underlying asset is digital gold which then gets leased to India's Top jewellers	Either gets accumulated as savings and gold is actually bought after the maturity period or gets invested in 22K gold, depending on the scheme	paper gold which tracks physical gold's price
Returns	gold price increase	gold price increase + Extra 4-5%	gold price increase	gold price increase
Minimum investment	₹10	₹100	₹500	₹100
Modes of withdrawing	cash, gold coins, gold jewellery	cash, gold coins, gold jewellery	gold coins, gold jewellery	cash
Flexibility	Very high	Very high	Low - can't change SIP amounts, can't pause without penalties, have to commit to one jeweller	High, however withdraw is only possible is cash

Which is the Best SIP for gold?

If your reason for doing SIP in gold is to get physical gold at some point of time in the future, you can choose between Digital gold, Gold leasing or Jeweller schemes. Of these if you want more flexiblity from the SIP, like daily/weekly/monthly modes of SIPs, SIP amounts as low as ₹100, withdraw anytime, digital gold and gold leasing provide these benefits.

On apps like Gullak, you can benefit from these features. Gullak allows you to do SIPs in Digital Gold. You can save over time and sell as cash, order gold coins or redeem jewellery at Gullak's partner stores. Gullak is is partnered with most of the big jewellery brands in India like Tanishq, Malabar etc for jewellery redemption.

Is gold SIP safe?

Sip in Gold is 100% safe.

With apps like Gullak, your gold is stored in secure vaults and are insured.
Gullak only works with India's Biggest Gold players, like Augmont(one of the Biggest Gold refineries), to ensure maximum security.
Additionally, you also get the benefit of maximum flexibility on your investments. You can increase, decrease SIP amounts or withdraw anytime.

Is gold SIP taxable?

Yes, SIP in Gold is taxable with a 3% GST at the time of purchase and additional LTCG or STCG taxes are applicable if you decide to sell as cash. In case, you are redeeming as gold(coins or jewellery), you don't need to pay capital gains tax.

In case you want to sell as cash, in the below table, we have compared the Gold SIPs above based on taxation and post tax returns based on an investment of ₹1Lakh. Please note, that there are no taxes if you redeem as physical gold, hence we haven't accounted for and physical modes of withdrawal for digital gold and gold leasing in the table below

Asset	Investment amount	Returns	Amount after 5 years of investment	Taxation applicable	Post tax amount
Digital Gold	₹100,000	11%(annual gold returns)	₹163,451	LTCG - 12.5% + one-time 3% GST during purchase	₹1,50,854
Gold leasing	₹100,000	11%(annual gold returns)+ Extra 5% gold pa	₹203,733	LTCG - 12.5% on appreciation + extra gold taxable based on income tax slab + one-time 3% GST during purchase	₹1,85,044
Gold mutual fund	₹100,000	11%(annual gold returns)	₹163,451	LTCG - 12.5%	₹1,53,725

How to start SIP in Gold?

To start SIP in Gold on apps like Gullak use the steps below:

Download the Gullak app
Signup using your name & number
Select either between digital gold or Gold+(Gullak's Gold leasing feature)
Choose SIP frequency and amount
Set up

Start SIP in Gold today

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TL;DR

A SIP in Gold lets you buy gold in small, regular amounts (daily/weekly/monthly) instead of a big one-time purchase, making it affordable and disciplined. Benefits include price averaging, goal-based planning, high flexibility, and starting with as little as ₹100/day on apps like Gullak. Popular options are Digital Gold, Gold Leasing (extra 4–5% gold yearly), Jeweller Schemes, and Gold ETFs/Mutual Funds — each differing in returns, flexibility, and redemption modes.

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