The Sovereign Gold Bonds are open for subscriptions…
Finbingo.com addresses your queries regarding this.
What is Sovereign Gold Bond?
Sovereign Gold Bonds are the Government Securities issued by Reserve Bank of India and are denominated in grams of gold (1 unit = 1 gram). The SGB returns are linked to the gold price and investors earn additionally fixed interest.
Should I invest in Gold & how?
Yes, one of the best ways to capture asset class diversification is to Invest in Gold through Sovereign Gold Bonds. Gold has been one of the best performing asset class with investors earning 16.62% over the last 3 year.
Is investing in physical gold better than SGB?
No, SGB offers a superior alternative to hold gold against physical form.
• SGBs give investors an additional 2.5% interest every year.
• No making charges.
• The capital gains tax arising on redemption of SGB on maturity to an individual has been exempted.
Can I buy SGB online?
Yes. An investor can apply online through the website of the banks. The issue price of the Gold Bonds will be ₹ 50 per gram less than the nominal value if the payment against the application is made through digital mode.
How much gold should I hold?
We believe investors should have an allocation of not more than 10-15% to gold in their portfolios based on their respective risk capacity, given the current scenario investors could increase allocation to the precious metal by 1-2%.
Can I gift SGB to my relatives & friend?
Yes, bond can be gifted and transferable to a relative/friend/anybody who fulfills the eligibility criteria, before maturity.