5 Things to Know About Sovereign Gold Bonds

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Let’s learn about the five important things about sovereign gold bonds.  

What are Sovereign gold bonds?

Sovereign gold bonds (SGB) are basically gold that comes with the guarantee of the government. To invest in this, you don't have to buy or store gold physically. SGBs are issued by the Indian government through the RBI. If you want to invest in gold safely and earn as much as the price of gold then SGBs are made for you. 


What is the maturity period of SGB?

SGBs have a maturity period of 8 years. In case one has to exit the scheme, they can do so after a term of 5 years.


What is the return on SGB?

SGBs have two types of return: Fixed annual and interest of 2.5% which you will get twice a year on your initial investment. Also to keep in mind, when the price of gold increases, yo

Do I have to pay tax on SGB?

You will have to pay taxes on your income tax slab rate on the interest you get on SGBs.  But after maturity, no capital gains tax will be imposed and you wouldn’t have to worry about GST and STT.  

Can I invest in SGB on Upstox?

You can now invest in SGBs on Upstox. Whether you are a beginner investor or looking to diversify your portfolio, SGBs offer a unique opportunity to invest in gold with the safety of government-backed securities and the potential for attractive returns. So, if you're interested in exploring a modern and secure way to invest in gold, click to read more about Sovereign Gold Bonds: https://help.upstox.com/support/solutions/folders/278074

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