Save for 5 kg gold in 10 years? How Axis MF’s gram-based Shagun SIP works

Axis Mutual Fund has introduced Shagun SIP, a digital feature that lets investors set a gold or silver accumulation target in grams instead of committing to a fixed rupee amount. The feature is available for Axis Gold Fund and Axis Silver Fund of Fund, with investors able to set long-term goals such as accumulating 5 kg of gold over 10 years.

How does Shagun SIP work?

A conventional SIP requires an investor to commit a fixed amount, such as ₹5,000 or ₹10,000 every month. Under Shagun SIP, the investor first decides how much gold or silver they want to accumulate and over what period.

For example, an investor targeting 5 kg of gold over 10 years can enter the desired quantity and investment period. The system then calculates the periodic investment requirement based on the prevailing price of gold.

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The important difference is that the rupee amount invested can change. If gold prices rise, the amount required to acquire the targeted quantity can increase. If prices fall, the required investment can decline. The target, however, remains linked to the chosen quantity.

Axis MF describes the feature as a way to move from static to dynamic pricing while allowing investors to accumulate precious-metal exposure systematically.

No physical gold involved

Investors do not receive or store physical gold or silver through Shagun SIP. The investments are made through Axis Mutual Fund's existing gold and silver fund structures.

According to the fund house, the underlying schemes invest in 99.5% purity gold and 99.9% purity silver. This allows investors to build exposure without dealing with physical storage, security or purity concerns.

The maximum accumulation limits under the feature are substantial: investors can target up to 25 kg of gold or 50 kg of silver.

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Does it work like an SIP?

The investment is systematic, but the contribution mechanism differs from a conventional SIP. Because the target is defined in grams, the monthly rupee contribution is dynamic.

The approach also spreads purchases across different market levels. This means investors are not relying on a single entry price and can potentially average their purchase cost over the investment period. However, the feature does not eliminate market risk, and the amount required can change as precious-metal prices fluctuate.

For long-term goals such as marriage, education or wealth preservation, investors can choose a target quantity and timeframe and create a personalised accumulation plan.

Boniface Noronha, Chief Digital Officer, Axis Mutual Fund, said, “Gold and silver remain important asset classes for Indian investors, accumulated steadily over time.”

He added that Shagun SIP offers “a fully digital, goal-based experience for investors looking to build gold and silver holdings systematically over the long term.”

The feature is available through the Axis Mutual Fund website, giving investors a digital route to plan precious-metal accumulation based on quantity rather than a fixed monthly rupee commitment.

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