SGB 2015-I series set for redemption on November 30 with 128% profit on investment; all you need to know
Reserve Bank of India (RBI) has officially announced the ultimate redemption value for the first series of the Sovereign Gold Bonds (SGBs). The SGB 2015-I series, launched in 2015, is scheduled for redemption on November 30 this year. The inaugural issuance of these bonds garnered investments amounting to ₹245 crore, as per the information disclosed by the country’s Central Bank.
Though the inherent lock-in period in these bonds is five years, these bonds are slated to mature after eight years of the issue date. Hence, it is essential to analyse the returns of these bonds to gauge their appeal as an investment choice. Here is a detailed overview of the returns provided by SGB 2015-I: Offer Price: ₹2,684 per gram Redemption Value: ₹6,132 per gram Profit on Investment: 128% ( ₹3,448) Annualized Gain: 11.7% These statistics underscore the remarkable returns produced by SGB 2015-I during its eight-year term.
The redemption price surpasses the issue price significantly, signifying substantial capital appreciation. The relatively nominal issue price was a result of the comparatively stable gold prices during that period. Furthermore, the annualized yield of 11.7 per cent is notably appealing when contrasted with alternative investment choices over the corresponding timeframe.
The blend of consistent interest payments and the prospect of gold price appreciation render SGBs an enticing investment avenue for individuals in search of a mix of steady income and capital growth. The fixed interest rate of 2.5 per cent ensures a reliable income stream, while the potential for gold price appreciation presents the chance for capital profits. This combination may be particularly attractive to risk-averse investors aiming for a harmonious
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