Sovereign Gold Bond: Why PPF, bank FD investors should think of investing in SGB too — explained
Sovereign Gold Bonds are issued by the Reserve Bank of India on behalf of the Government of India. These bonds are available in multiples of grams of gold, with the basic unit being 1 gram, and the minimum investment permitted is 1 gram. Investors in sovereign gold bonds receive an annual interest rate of 2.50%.
These bonds have a maturity period of eight years, with an option to exit after the fifth year. “Considering that the holding period is eight years, Sovereign Gold Bonds has several advantages over PPF and Fixed deposits," said Puneet Maheshwari, Director, Upstox Gold prices adjust according to inflation over a longer period. Additionally, the interest paid by the RBI is assured, and there are also tax benefits as there is no capital gains tax, making them a superior choice for investors seeking stability and growth in their portfolios, added Puneet Maheshwari "Sovereign Gold Bond (SGB)can be an ideal investment avenue for long-term investors who are willing to hold onto their investments for 5-8 years.
One of the significant advantages is that there is no tax on the capital gains if the investment is held till maturity. Apart from this, SGB provides an additional assured annual interest of 2.50% until maturity, over and above gold returns. These benefits are unique to SGBs and are not available in any other form of gold investments," said Pankaj Shrestha - Head of Investment Services, at Prabhudas Lilladher Pvt.
Ltd. basis the Sovereign Gold Bond (SBG). SGB has become a more attractive investment option after the withdrawal of Long-Term Capital Gains (LTCG) benefit from Gold ETF & Gold Mutual Funds w.ef.
1st April’23, he added. Gold serves as a secure haven within the realm of asset classes. Experts recommend
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