Why Invest in Sovereign Gold Bonds
Equities offer a compelling avenue for building wealth and achieving long-term financial goals. With the potential for substantial returns and the ability to hedge against inflation, equities remain a cornerstone of a well-diversified investment portfolio.
Sovereign Gold Bonds (SGBs) offer a unique combination of security, returns, and convenience, making them an attractive alternative to other financial instruments.
- Government-Backed Security
- Dual Income
- Tax Efficiency
- Tradability and Liquidity
- Hedge Against Inflation
- No Storage Costs
FAQs
Frequently asked questions on Sovereign Gold Bonds
SGBs are government-issued securities that represent a specific weight of gold, providing an alternative to holding physical gold.
SGBs offer the benefits of gold investment without the storage, security, and quality concerns associated with physical gold.
SGBs offer a fixed annual interest rate of 2.5%, paid semi-annually, along with the potential capital gains on gold price appreciation.
SGBs have an 8-year maturity period with an exit option available after the 5th year on interest payment dates.
The main risk is the price volatility of gold. However, SGBs eliminate risks related to theft, storage, and purity.
