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    ETFs And Bonds

    What is difference between Sovereign Gold Bonds and Gold ETFs
    Features Sovereign Gold Bond Gold ETF
    Issuer Government of India Fund houses/ Asset Management companies
    Form Government security denominated in grams of gold Open-ended mutual funds schemes (Tracking Gold prices)
    Tenure 8years (exit option after 5th year) No fixed tenure
    Interest rate Fixed: 2.5%p.a (semi-annual pay out) No interest
    Returns Linked to gold price+ Interest Linked to gold price
    Liquidity Limited, can be traded on exchanges but not very liquid Highly liquid; tradable on stock exchanges during market hours
    Taxation Capital gains tax exempt if held to maturity: Interest income taxable Subject to capital gains tax
    Key Advantage Tax free capital gains on maturity and fixed interest High liquidity and no lock -in period
    What is the share as margin haircut percent on the Sovereign Gold Bonds (SGBs)? What are the shares as margin haircut percent and maximum quantity pledge limit for the ETFs? How many Sovereign Gold bonds are their with percentage SAM haircut ? What are Sovereign Gold Bonds (SGBs)? What is the tenure of SGBs? What is the interest rate on SGBs? Can SGBs be used as collateral for loans? What are Gold ETFs?