Those who have invested in SGB in the last eight years have proved to be right.| Sovereign Gold Bond Investment.

 

Those who have invested in SGB in the last eight years have proved to be right:

 

Gold is considered a good investment option. However, with time there has been a change in the way of investing in it. Today, when it comes to investing in gold, the first thing that comes to mind is the Sovereign Gold Bond (SGB) and those who have invested in it in the last eight years have proved to be right. Sovereign Gold Bond ​​has given bumper returns to investors in the last eight years. 

You will be surprised, the returns have been up to 125%. If you are thinking of investing your hard-earned money then investing in Sovereign Gold Bonds can be a good option. To reduce the import of gold into the country, the government introduced Sovereign Gold Bond in 2015 on the occasion of Diwali. 

Although there was no decrease in the import of gold, in the form of gold bonds, gold investors got a new option for investment and they got strong returns on it. The government has issued 66 tranches of sovereign gold bonds in the last eight years. Looking at the figures, the average annual return on gold bonds in the last eight years has been 13.7%. 

If we look at the annualized returns on gold bonds issued earlier i.e. from November 2015 to the last issued gold bonds, then for an investor it has been a minimum of 4.48% and a maximum of 51.89%. This also does not include the 2.5% interest earned every year on Sovereign Gold Bonds. During these eight years, investors in the initial years of these Sovereign Gold Bonds seem to be getting the highest returns.

Investors subscribed to the first issue of SGB in November 2015 at ₹2684 per gram of gold. Those who made digital payments got ₹50 cheaper. At the same time, the price of gold is around ₹6017 per gram. That first issue of SGB will complete eight years in November 2023. In this way, the score return in this regard has been up to 125%. 

Experts who advise about financial planning say that there have been many ups and downs in the global economy in the last eight years. Because of this, the price of gold has increased. Many people in the country prefer to invest their money in Sovereign. Many investors also invest in sovereign gold bonds because of the tax advantage they get in comparison to gold, mutual funds or ETFs. 

Capital gain becomes tax-free after eight years of maturity. Not only this, the government also pays 2.5% interest on the value of the bond. There is no expense ratio in Sovereign Gold Bonds and there is no issue of purity with investing in it. There is also liquidity through listing and buyback. 

If invested in gold through the same investment, then tax is levied according to the tax slab of the investor. In the case of rich investors, the tax is levied at the rate of 30%. The Sovereign Gold Bond is issued by the Reserve Bank of India. It has a lock-in period of five years and a maturity period of eight years.

 

Gold bonds get a discount of ₹50 per gram when bought through digital payment.

An individual investor can invest a minimum of one gram and a maximum of four kilograms of value in gold bonds every financial year. The same institution or trust can invest in gold bonds equal to the maximum value of 20 kg.

Now the question is where to buy Sovereign Gold Bonds, you can buy SGB from any Government Bond or Stock Holding Corporation of India Limited, Post Office. Apart from this, you can buy it from any recognized stock exchange such as National Stock Exchange of India and Bombay Stock Exchange. The government introduced four issues of sovereign gold bonds in the last financial year.

 

There has not been any issue with SGB so far this year. Explain that interest rates are being increased amid an uncertain global environment. The fear of recession in America is also being expressed. In such an environment, investors are buying gold. Gold prices have gone up by 14% in the last year. Gold has given a return of 7.17% in the last three years. 

The SGB returns have been up 12.89% over the past five years and 6.87% over the past 10 years. This article is only for educational purposes. If you also want to invest in Sovereign Gold Bonds, then you do take the advice from a financial advisor first.