What is a Sovereign Gold Bond?
A Sovereign Gold Bond (SGB) is a government security denominated in grams of gold. It’s an alternative to owning physical gold and provides a means for investors to invest in gold without the hassle of storing physical gold. Sovereign Gold Bonds are issued by the Reserve Bank of India on behalf of the Government of India. Investors can subscribe to these bonds during specific subscription periods announced by the government. Sovereign Gold Bonds provide a convenient and relatively safe way for investors to invest in gold while also earning interest on their investment.
Key Takeaways:
- Sovereign Gold Bonds are issued by the government, making them a safe and reliable investment option for those looking to invest in gold.
- Unlike physical gold, Sovereign Gold Bonds offer an additional benefit of earning interest, providing investors with a dual source of potential returns.
- Investors can benefit from tax exemptions on capital gains and enjoy indexation benefits on long-term gains, making Sovereign Gold Bonds an attractive option from a tax perspective.
Table of Content
- Benefits of Sovereign Gold Bonds
- Risks of Investing in Sovereign Gold Bonds
- Eligibility to Invest in Sovereign Gold Bonds
- Investment Limits of Sovereign Gold Bonds
- KYC To Buy and Sell SGB
- How do I Buy and Sell Sovereign Gold Bonds?
- Maturity, Redemption, and Interest of Sovereign Gold Bonds
- Conclusion
- Sovereign Gold Bond – FAQs
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