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Now earn additional 2.75% p.a. returns
on Sovereign Gold Bonds

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Know more about Sovereign Gold Bonds Scheme

 
  • SGBs are Government Securities denominated in grams of gold(1 unit = 1 gram)
  • Issued by the Reserve Bank of India on behalf of the Government of India.
  • Investors will earn returns linked to gold price
  • Additionally fixed interest of 2.75%p.a. payable semi-annually on the amount of initial investment.
  • Bonds will carry Sovereign guarantee both on redemption amount on the interest.
  • Minimum Investment: 2grams | Maximum Investment: 500grams
  • Available in DEMAT & Paper Form
  • Tradable on National Stock Exchange on India Limited(NSE)
  • Tenure: 8 years with an exit option from 5th year onwards
  • Issuance through trading members of NSE

 

 

Advantages of Investing in Sovereign Gold Bonds(SGB)

Safest: Zero risk of handling physical gold

Earn Interest: 2.75% assured interest per annum on the initial investment

Tax benefits: No TDS applicable on interest Indexation benefit if bond is transferred before maturity Capital gain tax exempt on redemption

Assurance of purity: RBI will announce the price before the issue date which will be fixed on the previous week’s simple average of closing price of gold of 999 purity published by IBJA.

 

Sovereign guarantee: Both on redemption amount and on the interest.

Easy exit option: The tenure of the bond is for 8 years with an option to redeem from 5th year onward on the date on which interest is payable.

Ease of borrowing loan:Can be used as collateral Loans

Ease of borrowing loan:Tranche 1 trading commenced from June 13, 2016 onward.

COMPARISION OF PHYSICAL GOLD, GOLD ETF AND SOVEREIGN GOLD LOANS

Points Physical Gold Gold ETF Sovereign Gold Bonds
Returns Lower than the actual return on gold Lower than the actual on Gold Higher than actual return on gold
Safety Risk on Handling physical gold High High
Purity of Gold Purity of gold always remains a question High as it is Electronic Form High as it is Electronic Form
Wealth tax Wealth tax applicable at 1% on the valuation of the assets every year Not applicable Not Applicable
Capital Gain Long term capital gain tax applicable after 3 years Long term capital gain tax applicable after 3 years Long term capital gain tax applicable after 3 years (No capital gain tax if held till maturity*)
Collateral against loan Yes No Yes
Tradability / Exit route Conditional Trade on Exchange Tradable on Exchange redemption – 5th year onwards with Gol
Storage Cost High Very Low Very Low