- Published: 21 July 2016
- Hits: 3126
Be it Gold or cash, nothing is safe anywhere. Could that be the reason that more and more people are relying on digital saving and e-payments. So this is the perfect time to invest on your favorite yellow metal but with a difference.
How do I invest in gold without buying the real metal?
Sovereign Gold Bonds issued by Reserve Bank of India on behalf of Govt. of India. In simple language government securities denominated in grams of gold with the potential same as the physical gold that you hold secretly in your lockers or cupboards.
But still you feel that your physical gold can give you more?
Answer is no! The quantity of gold for which the investor pays are protected, as he receives the ongoing market price at the time of redemption/ premature redemption. Investors are assured of the market value of gold at the time of maturity and periodical interest. Now that might sound interesting aha!
Would you like to know further about the scheme?
SGB is free from issues like making charges and purity in case of gold in the form of jewelry. The bonds are held in books of RBI or in Demat form, eliminating risk of loss of scrip etc.
Now good news for you!
SGB fourth tranche issue is starting from 18.07.2017 to 22.07.2016.
Anybody interested to invest in SGB can buy just by
- Filling SGB investment form with PAN as proof of ID
- Transfer fund to UAE Exchange & Finance Ltd HDFC Bank Account number 00200340000226.
- Person should be a resident of India under FEMA Act, 1999- Individuals, HUFs, trusts, universities, charitable institutions etc. can invest up to 500gms SGB in a Financial Year.
- RBI has fixed SGB issue price at Rs.3119 and client can invest minimum 1 gram - maximum up to 500 grams.
- Fixed rate of Interest at 2.75%/anum pa on initial investment amount payable every 6 months
- Tenure: 8 years with exit options in 5th, 6th and 7th year also.
- Tradable through Stock Exchanges-NSE & BSE
- Available in Demat & Paper form
- Can be used for collateral for loans
- Zero risk from handling physical gold
Still looking on dilemma?