Sovereign gold bond

Hi everyone
I hav around 10lakh to invest in gold. I will completely invest in sgb because its risk free and rbi regulate it. I am confused should I purchase the bonds which are trading in market or new series. As sgb series trading in market are at lower price. If i bought them will i get 2.5% return per year & main question will it be completely tax free after maturity period.
Thanks in advance 😃
 

ShavirB

Founder
Staff member
Though the issue trading in market may seem cheaper then the new issue, but you must remember with the new issue you will get 8 years of interest (2.50%). For example - if you're buying a 3 year old bond, you would've missed 3 years of annual interest on that Bond. You need to incorporate that into account before making your decision.

To answer your 2nd question, the returns on SGBs will be completely tax free if held till maturity (total 8 years from the date of issue).
 

Mayur

KF Ace
Hi everyone
I hav around 10lakh to invest in gold. I will completely invest in sgb because its risk free and rbi regulate it. I am confused should I purchase the bonds which are trading in market or new series. As sgb series trading in market are at lower price. If i bought them will i get 2.5% return per year & main question will it be completely tax free after maturity period.
Thanks in advance 😃
Bro its Totally depends new bonds issue if new Interest rate is high then defiantly floating bond rate will go down, and vise versa so sit and calculate total interest you get at the end and then take decision. 😇
 
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