SIP means Systematic Investment Plan. Mutual Fund SIP are a means of inculcating savings discipline as well as benefitting from cost averaging in risky assets. While an SIP is an equity asset does not make it risk-free, it does not remain a preferred method of building long-term savings. Some investors may feel that SIPs have not performed over the past five years but this period has been unprecedented for financial markets.
Even if returns are not staggering for a specific period, an SIP helps in reducing risk compared with a lump-sum investment in that asset.
The recent price increase in gold has acted as a hedge against the corresponding rupee weakness. The rise in local gold price is primarily due to the currency, rather than a change in outlook for global gold prices. So, investors should be cautious about being overweight in gold.