If you have a Sovereign Gold Bond – SGB and you are planning to sell it ahead of time, then this news is very important for you. Often, the question arises in the minds of investors whether they can sell SGB before the entire 8 -year entire period? The answer is – yes, it is possible to do this with certain conditions. Let’s know in detail.
What is the opportunity for the bond purchased in October 2019?
If you bought Sovereign Gold Bond (2019-20 Series v) in October 2019, then a golden opportunity has come for you. You can sell the bond of this series ahead of time on 15 April 2025. The government has fixed the redemption price of Rs 9,069 per gram for this time. That is, you can now get the best return on your investment.
Great return of up to 139 percent
Now let’s talk about returns. If you bought this bond at the rate of Rs 3,788 per gram and now its price has been increased to Rs 9,069 per gram, then you are getting a return of about 139%. And it is only based on the increase in the price of gold.
It does not include an interest of 2.5% every year, which comes to your bank account separately. That is, if you add interest, then your total profits can be even more.
So much return in a short time is quite attractive than traditional investment options, and that is why Sovereign gold bonds are becoming extremely popular among investors.
What is the rule of selling sovereign gold bonds?
The total maturity period of Sovereign Gold Bond is 8 years. But the government has provided premature clearance to investors after completion of 5 years.
The way to decide the redemption price is also transparent. This price is fixed based on the average price of the last three business days of 999 purity declared by the India Bullion and Jewelers Association (IBJA).
The aim of the government is that investors can make profits from this investment according to their requirement, without any major loss.
Interest will also be benefited
If you do not sell this bond now and keep it with you for full maturity i.e. 8 years, then you will also get an interest of 2.5% every year.
This interest is transferred directly to your bank account every six months. This interest also keeps you additional income, which further strengthens your total returns.
In this way, Sovereign Gold Bond not only gives advantage of increasing the price of gold, but also becomes a strong means of regular income every year.
Can I still be invested in SGB?
Last year, the government did not launch any new sovereign gold bond series. However, the purchase and sale of earlier bonds and premature redemption facilities are still going on.
This means that investors who have earlier invested in SGB can still take full advantage of this scheme.
If you have old SGBs, you can sell them on a fixed date or if you want, you can keep up to the entire maturity and take advantage of increasing gold prices with regular interest.
conclusion
Sovereign Gold Bond is an investment option that provides safety, stability and good returns simultaneously. If you bought SGB at the rate of Rs 3,788 per gram in October 2019, now you are getting a chance to sell it at Rs 9,069 per gram.
Return of about 139% in 5.5 years is a great deal for any investor. Apart from this, the interest received every year makes it even more beneficial.
If you need money or you want to book profits, then premature redemption is a great option. And if your plan is to maintain investment for a long time, then it can be kept till maturity, taking advantage of interest and rising gold prices.
