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The government of India brings to you the Sovereign gold bonds (SGB) that you can buy at the issue price and redeem after 8 years. The bonds are a safe and secure way of investing for future needs. You not only save on heavy making charges by the jewellers but also earn interest annually and receive appreciated value of gold at redemption.
Indian citizens including HUFs, trusts, charitable organisations and universities are eligible to buy SGB.
Invest in SGB and save Rs 50, an additional saving.
The minimum investment should be 1gram of gold.
The gold is dominated in units of 1gram of gold and so on.
4kgs is the maximum an individual and HUFs can invest in SGB and 20 kg is a maximum limit for trusts and similar organisations.
The tenure of SGB is 8 years, however, after the 5th year, you can redeem it on interest payment dates.
The interest rate on the investment will be paid as notified by the RBI and is paid semi-annually.
The redemption price will be calculated based on the average of the last 3 business days of the closing gold rate of 999 purity.
It's easy to possess. Holding gold bonds in a Demat account is easy and safe.
The capital gain tax has been exempted on redemption of SGB. This is the biggest advantage of gold bonds that wins the game against investing in shares.
You can trade your gold bonds on stock exchanges within a fortnight of the issuance date, as per RBI.
Your gold bond can be used as collateral for loans. This feature out beats the shares.
SGB are easily transferrable by executing the instrument of transfer as per the guidelines of the Government securities act.
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