Get ready for the upcoming installment of Sovereign Gold Bond (SGB) as it opens on February 12th, offering investors a golden opportunity to diversify their portfolios.
Here’s a comprehensive overview to address all your queries:
1. Issue Details:
The Sovereign Gold Bond Issue for 2023-24 Series 4 commences on February 12th and will remain open for five days.
The price of gold per gram is set at Rs 6,263 for this installment, as announced by the RBI on February 9th.
Investors applying online and making digital payments are eligible for a Rs 50 discount per gram, reducing the effective price to Rs 6,213 per gram.
2. Purchase Options:
Investors can avail SGBs through both online and offline channels.
Scheduled commercial banks, Small Finance Banks, Payments Banks, Regional Rural Banks, Stock Holding Corporation of India (SHCIL), Clearing Corporation of India Ltd (CCIL), Post Offices, National Stock Exchange (NSE), and Bombay Stock Exchange (BSE) offer avenues for purchase.
3. Price Determination:
The price of SGB is determined based on the simple average closing price of gold of 999 purity.
Closing prices of the last three days of the week, announced by the India Bullion and Jewelers Association, serve as the basis for price fixation.
4. Annual Interest Rate:
Investors receive a fixed annual interest rate of 2.50% on the nominal value of their investment.
Interest payments are made semi-annually, providing a steady income stream alongside potential capital appreciation.
5. Investment Limits:
Individual investors can invest a maximum of 4 kg of gold per financial year, while the limit for Hindu Undivided Families (HUFs) is set at 20 kg.
Similar limits apply to other institutional investors, ensuring a balanced participation framework.
6. Maturity Period:
The maturity period for SGB is 8 years, allowing investors to benefit from potential gold price appreciation.
Withdrawal options are available from the 5th year onwards, offering liquidity and flexibility.
7. Safety and Collateralization:
SGBs are issued by the RBI on behalf of the government, offering investors a safe and secure avenue for investment.
SGBs can also be used as collateral for obtaining loans, adding to their utility and flexibility.
8. Inception of SGB:
The Sovereign Gold Bond Scheme was launched in November 2015 with the aim of reducing the demand for physical gold.
Over the years, SGBs have garnered significant investor interest, fostering a culture of savings and investment.
With its attractive features and government backing, investing in Sovereign Gold Bonds offers a compelling proposition for investors seeking exposure to the gold asset class.