Hello Readers,
Planning a proper financial portfolio is not an easy task. Nowadays people are getting aware about savings and investments but they don't get proper information on where should they can invest for good return and safety. Security of capital is major concern of traditional investors where they are ready to compromise with higher returns but cannot take risk of capital loss. In India, where incomes are low and saving ratios are also not in good position. Here people have hardly knowledge of other way of investing other than bank FDs and RDs. But one thing people love to invest is Gold which is traditional way of low risk high return conceptual investment.
Today I will share you one of the safest investment where you can get assured return. In traditional way of investing, people like to invest in physical gold and when value increases, they sell at market price and book profits. But in between of buying and selling gold, people have to take care of gold in a way of damage, cleaning and security which is also increases our expenses. Because of these hassle people are moving to paper gold from physical gold.
What is Sovereign Gold Bond???
It is a special gold bond security issued by Reserve Bank of India, guaranteed by Government of India. By issuing this, RBI provide a chance to invest in paper gold in place of physical gold which is 100% secured govt bond. Anyone who is originated from India can buy this bond directly from RBI website. Some other places e.g. PSU banks, private bank, Point of investment (POI), stock exchanges like BSE & NSE and post offices are also issued on behalf of RBI.
Who can buy??
As mentioned above, any resident of India age above 18, Hindu undivided family (HUF), Trust, Cooperative bodies etc. can apply for the bond and limit capacity is fix which is 1 gram minimum and maximum 4 kg for individuals & 20 kg maximum for HUF, Trust and other legel entity.
Value of Investment
The value of SGB is equivalent to Gold price. In general, SGB is issued for 8 years and after this, an investors can return back to the RBI on market price of gold. The earning from maturity and selling value of SGB is fully exempt from income tax. RBI also provide 2.5% p.a. interest on holdings which is a taxable income. Any holder can sell this SGB on stock market any time on current gold price. It is said that SGB can use as a collateral security deposit in bank on behalf of any loan.
To know more about this SGB, anyone can visit official RBI website or can contact their personal bank.
Thanks
Saurav..
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