Articles - Currency Commodity
Sovereign Gold Bond (SGB) Pros and Cons: Should You Invest?
Sovereign gold bond benefits are numerous. It is simple, it is non-physical and it offers interest over and above gold price appreciation.
One of the popular ways of investing in gold is through sovereign gold bonds. Of course, that is not the only method since you can also do gold investment through physical gold purchases and through gold ETFs They are all a play on the price of gold
These bonds are typically issued by different public sector undertaking, some of which include National Highways Authority of India (NHAI), Power Finance Corporation Ltd. (P.F.C.), National Bank for Agriculture and Rural Development (NABARD), Housing and Urban Development Corporation Ltd. (HUDCO), etc, with the primary motive to raise funds for a specific reason for a fixed time period, and are offered at a pre-determined coupon rate. As issued by the PSUs, these include a very low credit risk. Section 10, Income Tax act allows the exemption of interest earned on these bonds. Also, the bonds are traded on stock exchanges.