Today (Sept 15) is the last day to apply for the Sovereign Gold Bond (SGB) scheme 2023-24 Series 2. The SGB scheme Series II will be available for subscription with prices set at Rs 5,873 per gram of gold after a discount of Rs 50.
- SGBs are held in demat form, which means there are no storage concerns
- An investor will get 2.5% interest per annum payable semi-annually
- Maturity amount is linked with market price of gold
- SGBs offer tax benefits, including exemption from capital gains tax if held until maturity of 8 years.
- On early exit indexation benefits available on capital gain
- Gold ETFs and Funds are taxable as per your tax slab
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- The returns on SGBs are not guaranteed, depend on the prevailing market gold price
- There is a lock-in period of 5 years, so you cannot exit your investment before then
When you exit your SGBs by selling at stock exchange, the price will depend on the prevailing market price and may be influenced by the trading pattern at that time.
Yes, you can buy previous series of SGBs through the secondary market subject to liquidity. Currently, there are 63 series of SGBs listed in the secondary market.
You can purchase SGB through SBI, HDFC Bank, PNB, Canara Bank, and ICICI Bank, Stock Holding Corporation of India Limited (SHCIL), post offices authorised by the RBI.
You can buy minimum 1 gm and maximum 4 kg through SGB.
The issue price of SGB is determined based on the average closing price for the last three working days of the week preceding the subscription period.
SGB is one of the cheapest ways of investing in gold. SGB gives you a chance to diversify your portfolio.
You can invest 10-15 per cent in gold to diversify your portfolio.