Sovereign Gold Bond: A new series of sovereign gold bonds for the financial year 2020-21 has opened for subscription from December 28. Yi will be the last series of the year 2020. This year, every series of gold bonds has received tremendous response from investors. This series will be open for investment from 28 December 2020 to 1 January 2021. This time for gold bonds, the government has fixed the issue price at Rs 5000 per gram, that is, Rs 50,000 per 10 gram. At the same time, if you buy gold bonds online, then there will also be a discount of 50 rupees on every gram. The issue price for online investors will be Rs 4950 per gram i.e. Rs 49,500 per 10 gram. Explain that the government has brought this series of sovereign gold bonds when gold is selling at a discount of around 5500 rupees from its record high this year. Experts believe that there is a good chance to buy cheap gold before the new year.
Why is gold bond a good option
Experts cite many important things behind Nivea in Gold Bonds. Ajay Kedia, director of Kedia Advisory, says that in the last 2 years, gold has received 25 percent and 28 percent returns. If you look at the history of returns in gold, it has given steady returns in the long term. On the other hand, looking at the outlook of gold, it can be said that 10 to 15 percent allocation should be in gold in the portfolio of an investor. The most unique quality of gold bonds is that in addition to the rise in the prices of gold, you also get additional interest at the rate of 2.5 percent. This makes it a better option than investing in gold through physical gold or MCX.
Advantage of long term investment
It is tax free on gold bond maturity. This too is its unique quality. At the same time, the expense ratio is nothing. Being supported by the Indian government, there is no risk of default. It is also a better option for HNIs, where it does not have to pay capital gains tax to hold till maturity. Equity attracts 10% capital gains tax. In such a situation, it is proving better in long-term investment options.
Easy to manage
It is easier and safer to manage gold bonds than physical gold. There is no hassle of purity in this and prices are decided on the basis of pure gold. There are easy exit options. Against this, there is also the facility of gold loan against mortgage.
What better time
Experts consider this a better time to invest in gold bonds. In fact, Gold is trading at a discount of around 5500 rupees from its record high. Gold in MCX crossed Rs 56000 per 10 gram level in August. It is currently trading close to 50500. Gold is considered a safe haven in the face of economic uncertainty. Speaking of now, all the major economies are under pressure. New types of corona viruses are also raising concern. In such a situation, Niveyak should include the gold available at a discount in its portfolio.
How and where to buy
Investor must have PAN with every SGB application. You can buy gold bonds online. Apart from this, it will also be sold through banks, Stock Holding Corporation of India Limited (SHCIL), select post offices and stock exchanges like NSE and BSE. You can save tax by investing in this scheme. In a Sovereign Gold Bond Scheme, a person can buy up to 400 grams of gold bonds in a financial year. At the same time, minimum investment is one gram.