Friday 27 September 2024

Advantages of Investing in Sovereign Gold Bonds (SGB) and SIPs

SIP and SGB Insights by Kannan M.

SIP and SGB Insights by Kannan M.

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Understanding Sovereign Gold Bonds (SGB)

This is a compelling example of the benefits of investing in Sovereign Gold Bonds (SGB). The following details illustrate the financial advantages:

Investment Details Details
Pure Gold 24 Carats
Initial Investment (September 2016) ₹3,150 per gram
Maturity Date 30/09/2024
Current Trading Price ₹7,512 per gram

Advantages of a 10-gram Investment

  • Interest Earned: 2.50% per annum over 8 years = ₹6,300
  • Price Appreciation: ₹43,620
  • Capital Gains Tax: Nil
  • Making Charges: Nil
  • GST: Nil
  • Risk of Physical Holding and Locker Charges: Nil

Your Investment Journey

With an IRR of 13.25%, SGB offers a lucrative investment opportunity without the common risks associated with physical gold.

Explore More About SIP

For a deeper understanding of SIP, check out my book:

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Additional Resources:

You can click here to get the Gold Bond IRR calculation template, which helps you analyze the potential returns from your investments in Sovereign Gold Bonds.

Here you can view the Returns presentation to understand cash flow returns better and make informed investment decisions.

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