sovereign gold bondThe Government of India launch its  Sovereign Gold Bond (SGB) from 1 Sep  to 9 Sep 2016. Issue price for the Sovereign Gold Bond for this tranche has been fixed at  Rs. 3,150 per gram.

The Investor who had invested in earlier tranche have gain approximately 17.36% (Tranche I), 21.15% (Tranche 2) & 8.02% in( Tranche III)

Tranche No Start Date SGB Issue Price Current Issue Price Absolute Amt Gain Absolute Returns No of Days

(Since Start Date)

2015-16 — 1 Nov 2015 2,684 3,150 466 17.36% 301
2015-16 — 2 Jan 2016 2,600 3,150 550 21.15% 234
2015-16 — 3 Mar 2016 2,916 3,150 234 8.02% 177
2016-17 — 1 July 2016 3,119 3,150 31 0.99% 45

Issue Details

Gold BondSovereign Gold Bond 2016-17 Series II
Issue Open01 Sep 2016
Issue Close09 Sep 2016
Issuance Reserve Bank of India on behalf of Govt of India
Tenor8 Years (Exit option from 5th year)
Price BandRs. 3,150 per gram
Maximum Limit500 grams per person per fiscal year (Apr-Mar)
Interest RateFixed Rate 2.75% per annum payble semi-annually on the initial value of investment
CollateralBond can be used as collateral for loans.
Tradability (Liquidity)Bonds will be tradable on Exchange
Tax TreatmentThe Interest on Gold Bonds shall be taxable. The capital gain tax arising on redemption of SGB to an individual has been exempted.
Indexation The Indexation benefits will be provided to long term capital gains arising to any person on transfer of bond.
NRI not allow to Invest to invest in Sovereign Gold Bond


Comparision of Physical Gold, Gold ETF  & Sovereign Gold Bond :

Physical GoldGold ETFSovereign Gold Bond
ReturnsLower than Actual Return on goldLower than Actual Return on goldHigher than Actual Return on gold
SafetyRisk on handling physical goldHighHigh
Purity of GoldPurity of gold always remains a questionHigh as it Electronic FormHigh as it Electronic Form
Wealth TaxWealth Tax applicable @ 1% on the total valuation of the asset every yearNot ApplicableNot Applicable
Capital GainLong term Capital Gain Tax applicable after 3 yearsLong term Capital Gain Tax applicable after 3 yearsLong term Capital Gain Tax applicable after 3 years ( No Capital Gain Tax if held till maturity)
Collateral Against LoanYesNoYes
Storage CostHighVery lowVery low

Sovereign Gold Bond –  Call your Broker , agent , distributors, financial advisor

For Investment in this Bond  Mobile:  77 1991 7444