At the Maturity of the First SGB Tranche, Sovereign Gold Bonds (SGB) have captured the interest of the financial and bullion markets! According to Colin Shah, MD of Kama Jewelry, Sovereign Gold Bonds provided a fantastic CAGR of roughly 10.8% over an 8-year period with an annual interest rate of 2.5%.
This demonstrates that SGBs are here to stay and will provide excellent returns in the future. With numerous advantages such as hassle-free storage against actual gold, annual fixed interest of 2.50% payable semi-annually, and scheme value tied to market price.
As a government-backed investment, it provides security as well as other benefits such as the flexibility of being tradable on stock exchanges and exemption from capital gains tax, making it a popular investment choice, particularly for risk-averse investors looking for investments with low risk and stable returns.
With Rs. 245 crore raised from investors over the first tranche’s duration, we believe sovereign gold bonds are here to stay and will continue to attract investor interest.”