Should you invest in the Sovereign Gold Bond Scheme?

Series five of RBI’s Sovereign Gold Bond Scheme 2020-21 opened on Monday for a period of five days. There will be one more tranche of SGBs after this one in the current financial year. The issue is priced at Rs 4,790 per gram and there is a discount of Rs 50 per gram if you invest online. Should you invest in SGBs? Who should not invest in it? How do the government’s gold bonds compare with gold ETFs, gold mutual funds and gold jewellery ? Shalini Warrier, Executive Director, Federal Bank answered many such questions. She also discussed if it was a good idea to make premature withdrawal after five years of investing in SGBs. Watch the video for more.