New Delhi: Investors trying to capitalize on the advantages of Sovereign Gold Bonds (SGBs) may have an opportunity to subscribe to the newest tranche, Series IV of 2023-24, beginning February 12. The subscription window will stay open for 5 days, concluding on February 16, with the issuance scheduled for February 21, 2024.
Investment Opportunity
Sovereign Gold Bonds, launched by the Indian Government in 2015, supply traders a novel strategy to spend money on gold. (Also Read: EPFO Hikes Interest Rate For Fiscal Year 2023-24; Now Subscribers Get THIS Much Return)
Recognized as Government of India Stock beneath the Government Securities Act, 2006, these bonds present a good annual rate of interest of two.5 p.c, credited semi-annually to traders’ accounts, with the ultimate curiosity cost upon maturity. (Also Read: Latest SBI FD Rates 2024: How Much Return Will You Get From Fixed Deposit? Check Here)
Investment Details And Advantages
SGBs are denominated in grams of gold, with a minimal funding requirement of 1 gram and a most subscription restrict of 4 kg. Investors have the choice for untimely redemption after the fifth 12 months, coinciding with the date of curiosity cost.
Importantly, upon maturity, these bonds incur no tax on redemption, making them a pretty possibility for long-term traders.
Valuation
Interested traders should buy SGBs by way of varied channels together with scheduled industrial banks, designated put up workplaces, and inventory exchanges.
The valuation of SGBs is set by the typical closing value of 999 purity gold over the previous three working days earlier than the subscription interval. Online subscriptions with digital funds additionally take pleasure in a reduction of Rs 50 per gram.
Returns
Past efficiency of SGBs signifies promising returns, with the primary collection issued in 2015 maturing on the finish of 2023, yielding annual returns of 12.9 p.c.
In comparability, the yellow steel averaged 11.2 p.c returns over the past 20 years. SGBs issued on February 8, 2016 (SGB 2016-I) are set to mature on February 8, 2024.
Source: zeenews.india.com
