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The key aspects of the Sovereign Gold Bond Scheme 2023-24 and discuss why it is an excellent choice for both seasoned and novice investors.
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SOVEREIGN GOLD BOND SCHEME An Attractive Investment Opportunity
Scheme Overview • Launched by the Government of India in 2015 • Shifts investment from physical gold to financial savings • Bonds denominated in grams of gold
Key Features and Benefits Safety and Security - Backed by the Government of India Attractive Returns - Linked to gold price with annual interest rate of 2.5% Tax Benefits - Exemption on capital gains at maturity, indexation benefits on interest income Liquidity and Tradability- Tradable on stock exchanges Collateral - Can be used as loan collateral
Subscription and Investment Details Investment Limits - Minimum 1 gram, maximum 4 kilograms per fiscal year (higher limits for trusts) Tax Treatment- No capital gains tax on redemption, indexation benefits on long-term capital gains Payment Options - Cash, demand draft, cheque, or electronic banking
Risks Associated with SGBs Market Risk - Fluctuations in gold price Interest Rate Risk - Value may decline if interest rates rise Inflation Risk- Value may increase with inflation
Conclusion Lucrative investment opportunity for exposure to gold Safety, attractive returns, tax advantages, and liquidity Diversify portfolio and protect wealth Consult financial advisors before investing
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