Sovereign Gold Bond: Sovereign Gold Bond is open for customers, new investors are getting discount
Modi government is once again selling cheap gold. The sale will start from today and you have a chance to buy cheap gold for the next 5 days. This is gold, which cannot be stolen by a thief, so guaranteed of purity that it is sold at the prevailing market rate with interest. Apart from this, it has many advantages. Yes, we are talking about Sovereign Gold Bond.
The first installment of Sovereign Gold Bond (SGB) for the current financial year will go on sale on Monday, five days from today. Rishad Manekia, founder and managing director of Mumbai-based investment advisory firm Carus Capital, said SGBs can be seen as an alternative to holding and investing in physical gold. It is a useful option from the point of view of government and security support. Let us know about its benefits, rate and place to buy.
Benefits of Sovereign Gold Bond
Guaranteed Return: The most important thing is that the investor gets the benefit of increasing the price of gold. In addition, he gets a fixed fixed interest of 2.5% on the investment amount.
Liquidity: Bonds are subject to liquidity on the stock exchanges within a fortnight of issuance.
Tax exemption: Long term capital gains tax will be levied after three years (if retained till maturity, no capital gains tax will be levied).
Loan facility: It can be used for loan at the same time. The tenor of these bonds is 8 years and they can be prematurely withdrawn only after the 5th year.
Exemption from GST and making charges: Exemption from GST and creation of expenses like physical gold.
Storage problem: Digital gold does not face maintenance problems
At what rate will you get gold
The price of gold for this installment has been fixed at Rs 5,091 per gram. This will be the first issue of the current financial year. The government has offered a discount of Rs 50 per gram to the investors applying online and applicants have to pay in digital mode to avail the discount.
where and how to get
Under the Sovereign Gold Bond Scheme, a person can buy a maximum of 500 grams of gold bonds in a financial year. While the minimum investment is one gram. You can save tax by investing in this scheme. Bonds will be limited to sale to trustees, HUFs, trusts, universities and charitable institutions. Further, the maximum membership limit will be 4 kg per person, 4 kg for HUF and 20 kg for trusts and the same per financial year (April-March).
According to RBI data, a total of Rs 38,693 crore (90 tonnes of gold) has been collected so far since the scheme was launched in November 2015. A total of Rs 29,040 crore was collected in the financial years 2021-22 and 2020-21, which is about 75 per cent of the total amount collected.
RBI raised a total of Rs 12,991 crore (27 tonnes) during 2021-22 by issuing 10 SGB tranches. The central bank released a total of Rs 16,049 crore (32.35 tonnes) in 2020-21 by releasing 12 installments of SGB.
The central bank actually issues the bonds on behalf of the Government of India. They can be sold only to residents, Hindu Undivided Families (HUFs), trusts, universities and charitable organizations. RBI said the SGB will have a tenure of eight years, after which it can be prematurely encashed after the fifth year. This option can be exercised on the date on which interest is payable.
The years before the outbreak of the COVID pandemic saw the greatest attraction for investing in sovereign gold bonds, and investments in the scheme grew rapidly as investors sought safer alternatives. The sharp volatility in the stock market during the years 2020-21 and 2021-22 also increased the trend towards gold bonds. The sales of these bonds accounted for 75 per cent of the total sales in these two years since the launch of the scheme in November 2015.