Sovereign Gold Bond: A new series of Sovereign Gold Bonds for the financial year 2020-21 has opened for subscription from today.
Sovereign Gold Bond:
A new series of sovereign gold bonds for the financial year 2020-21 has opened for subscription from today. It will be open to investors from October 12 to October 16. This time for gold bonds, the government has fixed the issue price of Rs 5,051 per gram, that is, Rs 50,510 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. For online investors, the issue price will be Rs 5,001 per gram i.e. 50,010 per 10 gram. Explain that the government has brought this series of Sovereign Gold Bonds when gold is selling at a record high of 6000 rupees from its record high this year. Experts believe that there is a good chance to buy cheap gold before the festive season.
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.
Learn why you should buy at 10 points
1. The most unique quality of gold bonds is that in addition to the rise in gold prices, you also get additional interest at the rate of 2.5 percent.
2. It is tax free on maturity.
3. The expense ratio is nothing.
4. There is no risk of default by being supported by the Government of India.
5. It is easier and safer to manage than physical gold.
6. There are easy exit options.
7. Against gold bond facility.
8. 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.
9. There is no hassle of purity in this and prices are decided on the basis of pure gold.
10. Talking about the last 10 years or 15 years, gold has consistently given good returns.
What is Sovereign Gold Bond
In Sovereign Gold Bonds, the investor receives gold in paper form, not in physical form. It is safer than physical gold. As far as purity is concerned, its accuracy cannot be doubted due to its electronic form. After 3 years, this will attract long term capital gains tax (keeping till maturity will not attract capital gains tax). At the same time, you can use it for loans. If you talk about redemptions, you can redeem it anytime after 5 years.
What should buy gold bond
Ajay Kedia, director of Kedia Advisory, says that at present, 5 to 8% of the portfolio of investors should be in gold. If you have 5 per cent or less gold in your portfolio, then the gold bond is currently the best option to buy gold. Right now gold is trading at a significant discount from its record high. At the same time, the way there is no clear picture of the economy, it seems that gold will continue to rise further. Its most unique quality is that it is supported by the central government, which is issued by the RBI. It also gets an interest of 2.5 percent per annum.
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