Investment The changing trend of the economy has increased the craze of shares and mutual funds among investors. Apart from traditional investment mediums, the strong returns being offered in shares and mutual funds have attracted investors. However, it is not that investors are investing only in shares and mutual funds. Gold still remains a favorite investment medium among investors. Investors are investing heavily in Sovereign Gold Bond Scheme (SGB) instead of physical gold. Let us tell you that investors bought bonds worth Rs 27,031 crore in the last financial year, which is four times the gold bonds purchased in 2022-23. In the financial year 2023-24, 44.34 tonnes of gold was purchased for Rs 6,551 crore through Government Gold Bond (SGB).
The price of gold rose sharply
This information has been given in the annual report of the Reserve Bank, which issues bonds. According to the report, the total amount raised from SGB during 2023-24 is Rs 27,031 crore (44.34 tonnes). SGB was issued in four phases in the last financial year. A total of Rs 72,274 crore (146.96 tonnes) has been raised in 67 phases since the launch of the SGB scheme in November 2015. In the last one year, the price of 24 carat gold per 10 grams has increased from about Rs 62,300 to Rs 73,200.
Interest at the rate of 2.50 percent
SGBs are government securities denominated in grams of gold. They are an alternative to physical gold. These bonds are also exempt from capital gains tax. Apart from this, the bonds also offer interest at the rate of 2.50 percent per annum on the initial investment amount. SGBs are issued in denominations of one gram of gold and multiples thereof. The minimum investment should be one gram while the maximum investment limit for individuals is four kilograms.
Where can you buy SGB
Government Gold Bonds are sold through offices or branches of nationalized banks, notified private banks, foreign banks, designated post offices, Stock Holding Corporation of India Limited (SHCIL) and authorised stock exchanges directly or through their agents.
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