Sovereign Gold Bonds opens for subscription today: 6 golden reasons to invest in government-backed securities
Sovereign Gold Bonds 2020-21 (Series XII) will open for subscription from today (March 1). The issue will close on March 5. The issue price for sovereign gold bonds has been fixed at Rs 4,662 per gram.
It is issued by the Reserve Bank India on behalf of the Government of India. The Bonds are be denominated in multiples of gram(s) of gold with a basic unit of 1 gram.
The government in consultation with the Reserve Bank of India has decided to allow discount of Rs 50 per gram from the issue price to those investors who apply online and the payment is made through digital mode. For such investors the issue price of Gold Bond will be Rs 4,612 per gram of gold.
6 golden reasons to invest in Sovereign Gold Bonds:
1. No storage hassles
Unlike physical gold, there is no issue of storage when it comes to invest in SGBs, hence they are more secure. The tenor of the Bond will be for a period of 8 years with exit option in 5th, 6th and 7th year, to be exercised on the interest payment dates.
2. Guaranteed returns of 2.5% p.a. interest
The investors will be compensated at a fixed rate of 2.50 per cent per annum payable semi-annually on the nominal value.
