What is a Sovereign Gold Bond?

Sovereign Gold Bonds (SGBs)

Secure, profitable, and backed by the Government of India, SGBs offer a unique blend of safety and growth potential for your investments. It frees you from the hassles of keeping physical gold. Issued by the RBI, it is not only a safe option but also offers assured additional interest on capital. (SGB 2023-24 Series III. offers assured interest of 2.5% p.a on capital with instant discount of Rs.50 per gram on online payment.) It offers exemption from capital gains taxes if you stay invested till maturity (8 years). Benefit of indexation is available if redeemed after 5 Years.

Why to invest in SGBs?

1. No storage hassle and making charges unlike physical gold. Thus eliminates the risks and costs of holding physical gold.
2. Safe investment option backed by Govt of India.
3. It offers exemption from capital gains taxes if you stay invested till maturity (8 years)
4. Benefit of indexation is available if redeemed after 5 Years.
5. GST and TDS not Applicable
6. Can start with a minimum investment of 1 gram.
7. Earn 2.5% p.a. assured additional interest on capital disbursed biannually. (SGB 2023-24 Series III)

Read: If you want to create wealth through mutual funds, you need to keep these things in mind.