Gold Bond Scheme To Open On July 6: 10 Things To Know Before Investing

Interest Rate: A fixed rate of 2.5 per cent per annum is applicable on the Sovereign Gold Bonds, payable semi-annually. (Also Read: Physical Gold, Gold ETFs Or Gold Bonds: How To Approach Gold?) Who Can Buy: Resident individuals, Hindu Undivided Families (HUFs), trusts, universities and charitable institutions can invest in the SGB scheme. Issue Price: The issue price for the fourth tranche of the gold bond scheme is fixed at Rs 4,852 per gram, the RBI said on Friday. The price is determined on the basis of a simple average of the closing price 999-purity gold published by the Mumbai-based India Bullion and Jewellers Association (IBJA) for the last three working days of the week preceding subscription. Discount: Online subscribers paying through the digital mode get a discount of Rs 50 on every gram of gold. The same method is used for determining the redemption price. Important Dates: The fourth tranche of the scheme will remain open for five consecutive days starting July 6. The gold bond scheme will next open for subscription in August and September. Financial experts recommend gold bonds as an effective way to acquire gold as an investment. "Sovereign gold bonds are perhaps one of the best options for investors who want gold in their portfolio and do have a long-term investment horizon... It is always advisable to have exposure to some amount of gold in an investment portfolio for hedging and diversification purposes and the lock-in period serves that purpose very well," said Rahul Agarwal, director at Delhi-based financial services firm Wealth Discovery. How To Invest: The SGBs are sold through commercial banks, the Stock Holding Corporation, designated post offices, and stock exchanges BSE and NSE. The bonds are held in RBI books or in demat form. Investment Limit: A minimum of one gram and a maximum of four kilograms of gold can be acquired by eligible individuals and HUFs in a financial year. Trusts and similar entities can purchase up to 20 kilograms in a financial year. Lock-In: The gold bond scheme comes with a tenor of eight years, with an exit option after the fifth year. The option can be exercised on interest payment dates. Tax Implication: The interest on gold bonds is taxable. However, the capital gains arising out of redemption are exempted for individual investors. . Tranche Date of Subscription Date of Issuance 2020-21 Series I April 20-24, 2020 April 28, 2020 2020-21 Series II May 11-15, 2020 May 19, 2020 2020-21 Series III June 8-12, 2020 June 16, 2020 2020-21 Series IV July 6-10, 2020 July 14, 2020 2020-21 Series V August 3-7, 2020 August 11, 2020 2020-21 Series VI August 31-September 4, 2020 September 8, 2020 (Source: Ministry of Finance) .table.table_1 { border-top: solid 1px #ccc; border-left: solid 1px #ccc; border-right: solid 1px #ccc; } table.table_1 th { background-color: #f5f5f5; padding: 5px 10px; border-bottom: solid 1px #ccc; border-right: solid 1px #ccc; text-align: left; } table.table_1 td { border-bottom: solid 1px #ccc; border-right: solid 1px #ccc; padding: 5px 10px; } table.table_1 th:last-child, table.table_1 td:last-child { border-right: 0; } @media (max-width: 480px) { table.table_1 { display: table; min-width: 280px; max-width: 100%; font-size: 14px; } table.table_1 th, table.table_1 td, table.table_1 th:nth-child(n+1), table.table_1 td:nth-child(n+1) { display: table-cell; line-height: normal; } table.table_1 th:last-child, table.table_1 td:last-child { border-right: 0; } } .scroll { overflow: auto; } .table.table_1 { border-top: solid 1px #ccc; border-left: solid 1px #ccc; border-right: solid 1px #ccc; } table.table_1 th { background-color: #f5f5f5; padding: 5px 10px; border-bottom: solid 1px #ccc; border-right: solid 1px #ccc; text-align: left; } table.table_1 td { border-bottom: solid 1px #ccc; border-right: solid 1px #ccc; padding: 5px 10px; } table.table_1 th:last-child, table.table_1 td:last-child { border-right: 0; } @media (max-width: 480px) { table.table_1 { display: table; min-width: 280px; max-width: 100%; font-size: 14px; } table.table_1 th, table.table_1 td, table.table_1 th:nth-child(n+1), table.table_1 td:nth-child(n+1) { display: table-cell; line-height: normal; } table.table_1 th:last-child, table.table_1 td:last-child { border-right: 0; } } .scroll { overflow: auto; } .(The SGB scheme 2020-21 first hit the markets in April 2020)

Gold Bond Scheme To Open On July 6: 10 Things To Know Before Investing

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