Product Review: Reliance My Gold Plan (RMGP)

Reliance Gold in association with the world gold council has come up with a new product offering- a gold plan to accumulate physical gold through monthly periodic payments.

Target Segment-

People who want to accumulate gold for their personal use.

Features of the plan-

Minimum monthly amount of Rs 1000/- and in multiples of Rs 500 above it. Option of lumpsum investment also available.

The monthly subscription amount is divided in to 20 parts to even out the daily fluctuation in gold prices

The plan can be subscribed to for a period of 12/24/36/48 or 60 months.

The allotted gold with be 24 karat with 99.5 % purity

Lock-in period of 6 months

Quarterly statement of holding will be made available to clients via email

On maturity the accumulated gold grams can be withdrawn in the form of gold coins or gold jewellery through specified outlets.

Each gram invested by the clients is backed by physical gold and is stored with specialized security agencies as per the RBI norms.

Comparison with other Gold Savings Products-

RMGP scores over the traditional gold accumulation plans offered by jewelers in terms of assured purity and creditability .It also offers more flexible options of converting into physical gold while other in the latter schemes jewellery has to be bought from the same outlet on maturity.

RGMP is suitable only for people who want to buy physical gold by investing small amount over time as it does not have the option of redeeming the maturity proceeds as cash. If the primary objective is to diversify the investment portfolio, gold mutual funds is a better option.

DISCLAIMER: The views/opinions expressed in this review are solely those of the author and do not constitute any investment recommendation.


2 responses

  1. Your blog is new and informative which I dont know..As of now I know many companies are having the SIP like same in Gold ETF and they return back through cash only. Actually few months back I read RBI is planning to have such scheme which directly can buy from the outlet which by giving the necessary documents…I will spread this to my near and dear..

  2. Yes your blog is write but there is one you missed to add about credit card expense.Suppose if we have limit of Rs.2lakhs in credit card and we are using every month Rs.75000 as a recurring expense for bussinness then it will become a problem to us.As its offensive wrong method to use,credit card in personal name should not be used in heavy transaction for biz. If there is a mandatory situation to use we need to approach bank and to have a approval from RBI then it will not become any problem in IT returns or Central Excise, if not we will be trapped.How I know is one of my friend has been caught like same, So I am sharing the same..Limited usage is not much problem.

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