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HomeNewsOpinionHow do Sovereign Gold Bonds compare with Gold ETFs and equity indices

How do Sovereign Gold Bonds compare with Gold ETFs and equity indices

Gold ETFs move in line with gold prices but SGBs while moving in tandem with gold prices also carry a 2.5 percent annual interest (simple interest), which may seem small, but over the years makes a big difference. If one adds the AMC fees and taxation costs, the difference is wide enough to make investors move to SGB. 

Returns of SGB are higher than gold ETF on account of interest payment and low cost.

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