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Sovereign Gold Bond Scheme 2023-24 - Series IV

& Diversify your Portfolio

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What are Sovereign Gold Bonds?

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A perfect alternative to physical Gold

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Gold Bonds are issued by Reserve Bank of India

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Each bond is issued at the prevailing price of gold

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On Allotment, bonds are credited to Demat account

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Subsequently, these bonds are listed & traded on stock exchanges

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On maturity, Bonds are redeemed at the prevailing price of Gold

How SGB Works?

How-SGB-Works How-SGB-Works

Why is SGB the best form of Gold investment?

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Fixed Interest

2.5% interest p.a. on investment value

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Tax Advantage

No Tax on Capital Gain when held to Maturity

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Sovereign Guarantee

On Redemption Amount & Interest Payment

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Discount

Rs.50 discount/gm for online investment on new offers

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Low Cost

No making charges, no storage cost - Securely held in Demat

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Liquidity

Listed & Traded on Stock Exchanges

SGB Calculator​

Your Investment

SGB Calculator​

Enter Gold Quantity

Grams
5,147
5,147

Your Gain if Gold Prices go up by % over years

Sovereign Gold Bonds

6,177
+
1,029
=

Gold Bond Returns

7,206

Physical Gold

6,177
+
0
= ---

Only Gold Returns

6,177

SGB Comparison

PARTICULARS PHYSICAL GOLD DIGITAL GOLD SOVEREIGN GOLD BONDS GOLD ETFs GOLD MUTUAL FUNDS
Offered by Jewellers & Banks Jewellers, Banks & Fintechs RBI & Stock Exchanges AMCs & Stock Exchanges AMC’s & Distributors
Investment Limits Min.: 1gm and Max.: No limit Min.: ₹ 1 and Max.: No limit Min: Igm and Max: 4kg for Individual & HUF, 20kg for Trusts Min.: ₹ 1,000 and Max.: No limit -Minimum: Rs. 100 -Maximum: No limit
Regular Income No No 2.5% interest p.a. on investment value No No
Taxation on Gains Less than 3 years : Slab rate More than 3 years: 20% tax Jewellers, Banks & Fintechs At Maturity: No Tax, Less than 3 years : Slab rate, More than 3 years : 10% tax Slab rate Slab rate
Additional Costs Making Charges, Storage Costs & Transaction Spread Jewellers, Banks & Fintechs No extra cost Upto 1% annual expense Upto 1% annual expense
Lock-in period No Lock-in No Lock-in No Lock-in. However, if held to maturity, 0% tax on capital gains No Lock-in No Lock-in
Liquidity Yes Yes Yes Yes Yes
Rating

Sovereign Gold Bond - Future Returns calculator

Expected CAGR on Gold (%)
4732
7,268.24
53.6%
5Y 3M 18D
1.63%
10,406
3,765
8.2%
BUY
3007
7,300.00
142.8%
0Y 5M 26D
1.03%
7,549
286
8.1%
BUY
5611
7,251.37
29.2%
6Y 9M 20D
1.93%
11,503
5,208
8.3%
BUY
3214
7,270.00
126.2%
2Y 7M 30D
1.11%
8,713
1,658
8.0%
BUY
5000
7,280.10
45.6%
4Y 7M 14D
1.72%
9,960
3,259
8.3%
BUY
*Returns are XIRR (%). Indicative Price on Maturity, Indicative Gain and Indicative Return assume purchases are made at current prices and held to maturity. Future gains and returns are indicative and used for illustrative purposes only. Actual price on maturity and actual returns in future may vary. Investments in securities market are subject to market risks, read all the scheme related documents carefully before investing.

Why Invest in Gold

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Safe Haven during
Economic Turmoil

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Upside Potential due
to Inherent Demand

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Portfolio Diversification

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Easy Liquidity &
No Credit Risk

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Hedge aginst Inflation &
Currency Depreciation

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Low/negative Correlation
to other Assets

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Low/negative Bonds Yields
and Real Rates

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QE & B/S expansion
by Central Banks

Past Performance of Gold

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SGB Presentation

Sovereign Gold Bonds A Smart Choice for Gold Investments

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Research Report

Sovereign Gold Bonds Research Report

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Frequently asked questions (FAQs)

SGBs are Government Securities denominated in grams of gold. They are substitutes for holding physical gold. The Bond is issued by Reserve Bank on behalf of Government of India.

Price of the Bonds (nominal value) shall be fixed in Indian Rupees on the basis of simple average of closing price of gold of 999 purity published by the India Bullion and Jewelers Association Limited for the last three business days of the week proceeding the subscription period. The issue price of the Gold Bonds will be ₹ 50 per gram less than the nominal value to those investors applying online.

The Bonds are issued in denominations of one gram of gold and in multiples thereof. Minimum investment in the bond shall be one gram with a maximum buying limit maximum limit of subscription shall be of 4 kg for individuals, 4 kg for Hindu Undivided Family (HUF) and 20 kg for trusts and similar entities per fiscal year as notified by the government from time to time provided that a. annual ceiling will include bonds subscribed under different tranches during initial issuance by Government and those purchased from the secondary market; and b. the ceiling on investment will not include the holdings as collateral by banks and other Financial Institutions.

Yes. An individual can buy 4Kg worth of gold every year as the ceiling has been fixed on a fiscal year (April-March) basis.

The maximum limit will be applicable for the first applicant in case of a joint holding for the specific application.

SGB will be issued in either demat mode. The customers will be issued Certificate of Holding on the date of issuance of the SGB. Certificate of Holding will be sent directly to e-mail ID from RBI, if the e-mail ID is provided in the application form.

The interest of 2.50% p.a. will be credited semiannually to the registered bank account and the last interest will be payable on maturity along with the principal.

The bonds will get matured after a period of 8 years. Premature redemption can be done from the 5th year onwards.

On maturity, the redemption proceeds will be equivalent to the prevailing market value of grams of gold originally invested in Indian Rupees. The redemption price shall be based on simple average of closing price of gold of 999 purity of previous 3 business days from the date of repayment, published by the India Bullion and Jewelers Association Limited. The option of taking the physical delivery of gold is not available in case of these bonds.

Both interest and redemption proceeds will be credited to the registered bank account number furnished.

There may be a risk of capital loss if the market price of gold declines. However, the investor does not lose in terms of the units of gold which he has paid for.

The bond can be gifted/transferable to a relative/friend/anybody who fulfills the eligibility criteria (as mentioned at Q. no. 4). The Bonds shall be transferable in accordance with the provisions of the Government Securities Act 2006 and the Government Securities Regulations 2007 before maturity by execution of an instrument of transfer which is available with the issuing agents.

Premature redemption of these bonds is allowed only upon completion of 5 years from the date of allotment and this can be done only on the interest payment dates which is twice a year. Capital gains tax arising out of redemption of these bonds has been exempted which makes it a more lucrative investment opportunity from the longer term perspective when compared with other forms of gold. However, in case if you wish to exit from these bonds before the completion of 5 years, you also have the option to trade these bonds in the secondary market. We understand that listed bonds at times have limited liquidity which may result in volatile prices. Hence, for the benefit of our customers we only allow limit orders to be placed. In case if these are traded in the secondary market upon completion of 3 years, capital gains arising would be taxed @20% with indexation benefit and in case if these are traded within 3 years the gains would be taxed at the marginal tax rate, which is the tax rate in which an investor falls.