Sovereign gold bonds SGB is a scheme guaranteed by the Government of India, which offers an attractive option for Indian customers to diversify their portfolio and grow their funds by investing in a different scheme which comes with both security and growth.
SGB Bonds Series 4 subscription is open from 12.02.2024 till 18.02.2024– schedule released by RBI
Sovereign Gold Bonds Subscription is currently open from 12.02.2024 till 18.02.2024 with an issue price of 6263 Rupees per gram.
Those who purchase online can avail a discount of Rs.50 per gram.
Features of Sovereign Gold Bonds scheme
- Sovereign gold bonds are secure gold investment bonds issued by the Reserve Bank of India on behalf of the Government of India
- Investment period for SGB: 8 years with exit options every six months starting from 5 years and 6 months onwards.
- Minimum Investment of SGB: Minimum 1 gram and maximum 4000 grams.
- Interest Rate : 2.5% p.a payable every six months on the initial investment.
- Redemption of SGB: The redemption price is based on the gold price on maturity and will directly be paid or credited into the bank account of the customer.
- Can be invested in both Demat and Non- Demat mode.
Benefits of Sovereign Gold Bonds
- Capital appreciation to Gold price. As the gold price increases the investment grows.
- Additional 2.5 % of SGB unlike physical gold or Gold ETF
- No capital gain tax on maturity of 8 years
- Sovereign bonds are guaranteed by Government of India
- These bonds are issued by the Reserve Bank of India on behalf of the Government of India
- Zero risk of Theft unlike physical gold
- No GST or any other hidden charges
- Liquidity: Can always be sold on stock exchanges anytime the user wishes if opened in demat mode
- There is an additional facility to avail loan from bank against SGB as collateral
- Quite many easy ways to invest into this scheme through Banks or post offices
Eligibility to invest in Sovereign Gold Bonds
All Individuals of India are allowed to invest in Sovereign Gold Bonds except NRIs.
HUF, Trusts are also allowed to invest in SGB.
Minors can also invest in SGB and applications on behalf of the minor can be made by his/her guardian.