Sovereign Gold Bond (SGB) has always been very popular among investors. It is known for its safety as well as great returns. SGB not only gave returns equal to gold but also gave an additional interest of 2.5 percent every year, making it an unmatched investment option. The biggest thing was that it was guaranteed by the Government of India, that is, it was completely safe.
But, due to rising gold prices, the government suffered huge losses on it, and the Finance Ministry did not issue a single SGB this year. In such a situation, investors must be wondering whether the opportunity to invest in SGB is over now. Not at all! Today we will tell you a smart way, by which you can still invest in Sovereign Gold Bond and take advantage of all its benefits.
Buy SGB from the Stock Exchange
SGBs issued earlier by the government are still traded on the stock exchange, just like shares are traded. This means you can buy and sell them just like stocks. This is a great opportunity for investors who are waiting for the new series of SGB this year.
How to invest in SGB
On the brokerage app, you will find various SGB bond options. These have unique codes, such as SGBDC27VII GB, SGBJAN29X GB etc. You can check their current price, past returns, and other details on the brokerage app. Before investing, it is extremely important that you check the expiry date of that SGB bond. For example, SGBDC27VII GB will mature by the year 2027, and SGBJAN29X GB will mature by January 2029. You can choose from various SGB bonds as per your investment period and preference.
What is a Sovereign Gold Bond
The Sovereign Gold Bond (SGB) scheme was introduced by the Government of India in the year 2015. Its main objective was to reduce the demand for physical gold and provide investors with a safe and digital way to invest in gold.
Features of SGB
It is backed by the Government of India, so it is considered completely safe. There is no risk to your investment in it. You invest in gold digitally, so you do not have to worry about keeping physical gold or its safety. Its biggest feature is that it gives you a double benefit.
When the price of gold increases, you get an equal return
Apart from this, you also get a fixed interest of 2.50 percent annually on the invested amount. This interest is deposited in your bank account every six months. Unlike physical gold, there is no making charge or purity hassle on SGB. There is no income tax on capital gains received on maturity, making it even more attractive.