The 2019-20 Series IX (issued in February 2020) and the 2020-21 Series V (issued in August 2020) will be redeemed at Rs 10,070 per gram
According to RBI guidelines, sovereign gold bond (SGB) holders can request premature redemption after a five-year holding period from the date of issue.
The finance ministry is not impressed by the 'greenium', or green premium, on its green bond issuances, which was just 2 basis points on average across all issuances in the current fiscal. Higher demand for this instrument could provide a fillip to India’s push for a sustainable economy.
The launch of SGB Scheme 2023-2024 Series III has come on the back of gold prices increasing by more than 10 percent in 2023 and defying expectations amid a high interest rate environment.
Accumulating gold through Sovereign Gold Bonds presents a viable alternative to buying physical gold
Sovereign gold bonds 2015-Series-I has delivered 13 percent XIRR to its initial investors. Gold ETFs and physical gold have fallen short in comparison.
Investors should consider parameters depending on their objectives, risk, return, liquidity, and tax benefits before choosing the most appropriate option to invest in gold this Dussehra.
The tenor of the bond is eight years with an exit option after the fifth year.
A fresh tranche of sovereign gold bonds is open for subscription now. But you could also possibly buy SGBs from the exchanges at better prices and with good liquidity
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Dhanteras is an auspicious occasion to buy gold. Assess your portfolio and buy paper gold that is well-regulated on a good platform, is fairly-priced and comes with the necessary purity
If there is too much gold in your portfolio, you can afford to book some of the gains
Sovereign Gold Bonds offer a better alternative to physical gold with tax-free interest and carry no purity risk
The opportunity is in the form of buying sovereign gold bond (SGB) from the secondary market.
As a principle of financial planning, investment in gold should be in the range of 5-10 per cent of one's financial portfolio.
Investment advisors say the bonds offer a good portfolio diversification option. They also offer the twin benefit of capital appreciation and regular returns, besides not having the risk of handling like physical gold.