Sovereign Gold Bonds or SGBs are government securities denominated in grams of gold. They are substitutes for holding physical gold. Investors have to pay the issue price in cash and the bonds will be redeemed in cash on maturity. The Bond is issued by Reserve Bank on behalf of Government of India. Since they are issues by GOI, they are extremely safe and hold almost negligible chance of default. RBI comes up with fresh tranche of SGBs on a regular basis. Once the tranche is announced, the details such as interest rates, issue period, price, etc are known.
Jul 10, 2017 – Jul 14, 2017
Presenting Sovereign Gold Bonds (SGBs) 2nd TRANCHE, FY 2017-18 (Series-II): The latest and smartest way of Investing in Gold.
Here is the perfect alternative to buying physical gold. The Sovereign Gold Bonds (SGBs) are authentic certificates issued by the Government of India indicating that investors bought the stated quantum (in grams) of gold. The value of the bond will be linked to the price of gold.
You can also invest through your Demat Account.
Features and Benefits of SGBs:
- Fixed Interest Rate of 2.50% p., payable semi annually.
- Free from issues like making charges, impurities.
- Bonds will be held in demat form.
- Tenure - 8 years with exit option from 5th year.
- Tradable on exchanges.