SGB Scheme 2023-24 : Series II – Reserve Bank of India
Issue Details –
Gold investing is considered one of the safest investments. The Reserve Bank of India has launched the new series of Sovereign Gold bonds (SGB). These are the securities in denominations of 1 gram of gold.
▪️Issue Price : Rs. 5,923/gm (5873/gm if purchase online)
▪️Issue Period : 11th – 15 Sep, 2023
▪️Date of Issuance : 20th Sep, 2023
▪️Min. Investment : 1 Gram
▪️Max. Investment : 4 kgs
Benefits of SGB?
▪️2.5% Fixed Interest paid semi-annually
▪️Securely held in demat form
▪️Govt. backed gold bonds issued by Reserve Bank of India (RBI)
▪️No GST and Making charges unlike Physical Gold
▪️No recurring expense unlike Gold ETF
▪️Can be pledged for margin trading facility
Why Invest in SGB over Gold ETF?
▪️No tax on capital gain if held to maturity
▪️If sold in the secondary market, Less than 3 yrs – Slab Rate and More than 3 yrs – 20% with indexation
▪️Gold ETF is taxed at slab rate
Conclusion
This is a good opportunity to have 5 to 10% exposure to Sovereign Gold bonds if your portfolio does not have gold yet. This will help in the diversification of your portfolio. Please read all the scheme details before investing and consult your financial advisor.
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