"GOLD BOND - A new way towards Investment"

Gold is considered to be one of the most precious metal in our culture and now it has broadened its path in our investment portfolio.

Investment in gold is considered to be one of the safest investment by a middle class person.

   "According to a report Gold prices are expected       to grow by ₹65000-₹67000 in next one year."

There are various ways through which we can invest in Gold this can be through Gold Mutual Fund, Gold exchange traded funds, Gold saving scheme, and Sovereign Gold Bonds.

Sovereign Gold Bonds are government securities which are denominated in gram of gold. These Bonds does not require physical holding of gold, rather investors just need to pay the issue price and the amount will be redeemed in cash equivalent to gold price.

Among the above mentioned options SGB is one the most trending investment options. Although it started 5 years ago in India but have still gained popularity and investors are finding a new way towards SGB in such a small time span.

The minimum initial investment is 1 gram and can go up to 4 kg of gold per investors, with such a small investment even a small investor can start a journey in SGB. Though for trusts, and other institution the maximum limit is 20 kgs.

The current interest rate on SGB is 2.5% p.a. and is paid semi- annually to the investors and the return may vary according to current market price of Gold, this way investors can enjoy both interest and the appreciation in gold prices as well.

As the gold prices are expected to rise in near future this can be a good investment option.
Be it an individual, trusts, HUF, universities, charitable institution can invest in SGB, this provide a wide opportunity to different investors to invest in SGB.

The biggest advantage of such investment is that purity is not questionable as the investment is in a bond and not in physical gold.

Gold bond does not require extra expenditure for the storage, as in physical gold (which require locker facility) so there is no risk of theft associated with SGB.

Overall the investment in SGB is profitable as the bond will provide return in long run and will enhance the investment portfolio.

THANK YOU FOR READING TILL END.



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