The new series of the Sovereign Gold Bond plan 2024 opens on February 12; should you invest?

On February 12th, subscriptions for the next Sovereign Gold Bond (SGB) series became available. The issue price per gram that the Reserve Bank gave was ₹6,263. On February 12–16, 2024, subscriptions for the Sovereign Gold Bond Scheme 2023–24 – Series IV will be accepted. the new series of the sovereign gold bond plan 2024 opens on february 12 should yo

Save Money When Paying Online

The RBI said that investors who register online and pay digitally would get a discount of ₹50 per gram, making the issue price ₹6,213. A number of channels, such as stock exchanges, post offices, and scheduled commercial banks, are used to sell Sovereign Gold Bonds.

Minimum sum required to make an SGB investment

To purchase SGM, an individual investor must purchase a minimum of one gram and a maximum of four kilograms. For Hindu Undivided Families or organizations, the maximum investment amount is 20 kilogram. The investment limit is valid for a single fiscal year.

What is the yearly interest received?

Investors in SGB get an annual interest rate of 2.5 percent. Every six months, the investor receives money into their bank account. Over the last several years, gold has produced quite strong returns. In a single year, the return on gold was 8.92 percent. After two years, it has yielded a 9.55 percent return. In five years, it has yielded a return of 13.54 percent.

What is the SGB’s maturity period?

For SGB, the maturity period is eight years. An investor may amass a sizeable sum of money if the investment is kept up for the whole duration. Taxes are due by the investor on the interest earned on SGB. However, capital gains are not subject to taxes at maturity. Investing in it is entirely secure since it is issued by the RBI.

Early cessation of withdrawal?

SGB, however, has shown throughout time to be a poor choice for short-term investments. After investing for five years, money may be withdrawn. However, it lacks the liquidity of gold mutual funds or ETFs.

From a diversity standpoint, if you are an avid investor, gold should be a part of your portfolio.

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