Why Sovereign Gold Bond Scheme?

A sovereign gold bond is a better investment than physical gold because of many reasons. Firstly, these gold bonds allow you to get a lower price than physical gold when applied online. Secondly, you get a fixed interest rate on these gold bonds. Thirdly, gold bonds have no holding or storage cost.

Should we apply for Sovereign gold bond?

These bonds are listed on the stock exchanges. At the time of maturity, the RBI pays the prevailing value of gold. “SGB works the best for long-term investors, as they get interest and capital gains are tax-free if held till maturity,” says Ravindra Deshmukh, Certified Financial Planner, Arthmitra Financial Services.

Can I lose money in Sovereign gold bond?

3. Are there any risks in investing in SGBs? 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.