The latest sovereign gold coin (SGB) tranche will begin subscription tomorrow (March 1st). Investors can invest in SGB through their Demat account or online banking. India’s top lender, State Bank of India (SBI), offers the option to buy SGB online. “Get returns and security together! Six golden reasons to invest in Sovereign Gold Bonds. SBI customers can invest directly in INB under e-service,” SBI said in a tweet. ..
Here’s why you should invest in sovereign gold coins:
1) Reliable income of 2.5% annually paid semi-annually
Investors are paid at a fixed interest rate of 2.50% per annum, which is paid semi-annually to face value.
2) No storage hassle like physical gold
Unlike physical gold, it’s safer because there are no storage issues when it comes to investing in SGB.
Bonds will be available for trading on the stock exchange within two weeks of issuance on the date notified by RBI.
4) No GST and fees
Unlike gold coins and gold coins, there is no Goods and Services Tax (GST) levied on sovereign gold coins. If you buy digital gold, you will have to pay 3% of GST, just as you would buy physical gold.Also, there is no charge for SGB
5) Can be used as collateral for loans
Sovereign gold coins can be used as collateral for loans. The loan-to-value (LTV) ratio is set to be the same as the regular gold loan required by the Reserve Bank of India (RBI) from time to time. The bond lien shall be marked to the depository by an authorized bank.
6) There is no capital gains tax on redemption
The Sovereign Gold Bond Scheme was launched by the Government in November 2015 under the Gold Monetization Scheme. Under the scheme, the issue is opened by RBI for subscription in Tranche.
The issue price of Sovereign Gold Bond 2020-21 (Series XII) has been revised as follows. ￡According to the Ministry of Finance, 4,662 pieces per gram. “The Government of India has decided to allow discounts in consultation with the Reserve Bank of India. ￡50 per gram from the issue price to investors who apply online and pay in digital mode.For such investors, the issue price of gold bonds is ￡4,612 per gram of gold. “
SBI lists six major reasons for investing in Sovereign Gold Bond
Source link SBI lists six major reasons for investing in Sovereign Gold Bond