Economy

PhonePe Commences Gold SIP for Users

On Wednesday, Flipkart-owned PhonePe launched the Systematic Investment Plan (SIP) for investing in gold. PhonePe users can invest in the highest purity 24K gold for a specific amount every month and store their assets. The gold will accumulate in insured bank-grade lockers maintained by PhonePe’s partners SafeGold and MMTC-PAMP.

Process of Investing in Gold SIP on PhonePe

The advantage of starting a gold SIP on the PhonePe platform is the convenience of UPI. The users have to select the gold provider, select the monthly investment amount or grams, and buy it with UPI PIN authentication. All subsequent investments are entirely online. Thus, starting a gold SIP is a hassle-free and one-time process on the PhonePe platform.

Advantages of Investing in a Gold SIP on PhonePe

The advantages of investing in 24K certified gold on the PhonePe platform are as follows:

  • Users can buy gold at live market prices.
  • Users can invest as low as Rs.100 per month.
  • Users can sell their gold holdings and get direct credit in their bank accounts.
  • Users can redeem the gold in the form of gold bars and coins.
  • Users can get the redeemed gold coins or bars delivered to their doorstep.
  • The gold accumulated is 100% secure as they are stored in high-security vaults.

PhonePe stated that users do not have to continuously track gold prices to make an investment decision since gold SIP is a periodic investment. Investing a fixed amount at specific intervals towards gold could reduce the user’s average investment cost in the long run.

Terence Lucien, the head of investments at PhonePe, stated that PhonePe’s vision is to build offerings and products that cater to the investment needs of its users. Since Indians try to find smart ways to buy gold, PhonePe is happy to provide their users with the option of setting up a gold SIP through UPI. 

PhonePe’s gold SIP will help the users build long-term gold investments hassle-free by allowing them to buy the purest 24K gold through regular and small monthly investments. Currently, Mobikwik and Groww are a few other platforms that provide the option of investing in gold through SIPs.

For any clarifications/feedback on the topic, please contact the writer at mayashree.acharya@cleartax.in

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