Invest and earn some specific returns in Sovereign Gold Bond
Investing in gold is now easier and more convenient. With the Sovereign Gold Bonds Scheme of the Government of India, you can earn the interest rate guaranteed by eliminating the risk and cost of storage. The investor has many options to invest the money in the stock market, real estate, fixed deposit, mutual funds. As a secure investment this is the best options to purchase gold on electronics form and also you will get dividend/interest in your SGB.
Sovereign Gold Bond Benefit
Hassle Free: Ownership of gold with a certificate, So you buy without any physical possession also you have no risk and no cost of storage.
Tax exemption: The capital gains tax arising on redemption of Sovereign gold bond to an individual has been exempted.
Trade on the stock exchange: Bond is tradable in a stock market, some stockbrokers offer this facility to trade your SGB bond in the stock market.
Bond Transfer: According to the provisions of the Government Securities Act, the bonds can be transferred.
Basic Features of SGB
Issuance: To be issued by Reserve Bank India (RBI) on behalf of the Government of India.
Denomination: The SGB Bonds will be denominated in multiples of a gram(s) of gold with a basic unit of 1 gram.
Tenor: The tenor of the Bond will be for a period of 8 years with an exit option in 5th, 6th and 7th year, to be exercised on the interest payment dates
Minimum size: Minimum accepted investment is 1 gram of gold.
Maximum limit: The maximum limit of subscribed shall be 4 KG for an individual, 4 Kg for HUF and 20 Kg for trusts and similar entities per fiscal year (April-March) notified by the Government from time to time. A self-declaration of this effect will be obtained.
Interest Rate: Investors are paid annually on an annual value of 2.50% payable will be given on a semi-annual basis.
Why Sovereign gold is the best Comparison with Physical gold?
Gold sale: When you return your physical gold like jewelry and gold coin, You have to pay making charges but in case of SGB You will save your making charges. When you buy gold from the store it’s not a surety about that you bought pure gold. When returning time it may gold purity down. SGB is in electronic form issue by RBI and also you are not using the gold in physical so it does not have any purity related issue.
Charges: On physical gold, you have to pay policing charge. In SGB you don’t require to pay policing charges because your gold is in electronic form.
Sale: When selling your physical gold you face many problems and also you get a low amount of gold sale. SGB bond can tradable in the stock exchange and also transferable. So you can sale easily in the stock market.
Interest: In physical gold, you will not get interested on the total amount, but in SGB you will get annual interest at 2.50% on total amount.
How to Buy Sovereign Gold Bond?
RBI issue SGB Bond 2 or 3 times in a year. When SGB issue open you can apply from the bank and also bank provides SGB bond through internet banking, it is a hassle-free process you can apply at home easily.