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Business News/ Money / Personal Finance/  Sovereign Gold Bond's new tranche opens next week. Here is why SGBs are a wise decision
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Sovereign Gold Bond's new tranche opens next week. Here is why SGBs are a wise decision

Sovereign Gold Bond Series 2023-24 Series 4 will open for subscription next week from 12 Feb to 16 Feb for 5 days

Sovereign Gold Bond's new tranche opens next week: Tax benefits on SGBs accrue only when they are held till maturity. Premium
Sovereign Gold Bond's new tranche opens next week: Tax benefits on SGBs accrue only when they are held till maturity.

SGB's new tranche opens next week: Sovereign Gold Bond Series 2023-24 Series IV will open for subscription next week. SGB Scheme 2023-24 Series 4' will be open from 12 Feb'24 to 16 Feb'24 for 5 days. Investing in SGB is a safe way to invest in gold instruments that are backed by the government.

How can individuals invest in SGB 2023-24 Series IV?

Individuals can easily invest in SGBs by applying through Scheduled Commercial banks (except small finance banks, payment banks, and regional rural banks), Stock Holding Corporation of India Limited (SHCIL), Clearing Corporation of India Limited (CCIL), designated post offices, and recognised stock exchanges viz., National Stock Exchange of India Limited, and Bombay Stock Exchange Limited, or the RBI.

Discount to online buyers of SGBs

The issuance price of SGBs would be reduced by 50 per gram for investors who subscribe online and pay via digital means, allowing the investors to earn good market-based returns.

Advantages of SGBs

1)Secure & Safe

Unlike private gold investments, SGBs have less default risk because they are backed by the RBI, said Veer Mishra, Founder of PLUS

Their government backing ensures a higher level of safety compared to market-dependent alternatives, making them an attractive and secure investment avenue, said Shashank, Head of Product Strategy, SahiBandhu Gold Loans- A leading Gold Loan aggregator platform.

2) Easy-to-get Gold

There is no need to fear theft or keep actual gold in storage.

3) Steady Income

Regardless of changes in the price of gold, get an annual interest rate of 2.5% assured.

The advantage of Sovereign Gold Bonds (SGBs) is that they offer a unique combination of benefits i.e., not only do they appreciate as the price of gold increases, but they also provide a fixed interest rate of 2.5% per annum paid semi-annually on their nominal value, said Shashank.

4) Tax-effective

Capital gains at maturity are tax-free, in contrast to actual gold. “The maturity earnings are tax-free if the SGBs are retained for 8 years making it an enticing choice for investors looking for capital protection," added Shashank.

5) Unlock Liquidity

Veer Mishra advised that to gain more freedom, trade your SGBs on the stock exchange after five years.

6) Instant loans

These Sovereign Gold bonds can be used as collateral for loans as well. In times of financial need, one can avail of instant loans against these gold bonds.

Disclaimer: The views and recommendations made above are those of individual analysts, and not of Mint. We advise investors to check with certified experts before taking any investment decisions.

 

Sovereign Gold Bond Series 2023-24 Series IV
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Sovereign Gold Bond Series 2023-24 Series IV

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ABOUT THE AUTHOR
Sangeeta Ojha
A business media enthusiast. Writes on personal finance, business and banking.
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Published: 08 Feb 2024, 09:34 AM IST
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