The minimum permissible investment in the Sovereign Gold Bond has been set to be one gram whereas the maximum limit of subscription can go up to 4 kg for individuals.
If you are one of those who prefer investing in gold, today is the last date to invest in SGB Series II. The Reserve Bank of India opened the subscription for Sovereign Gold Bond (SGB) tranche on September 11 and September 15 is the last date for the same. RBI also announced the price for the Sovereign Gold Bond Scheme 2023-24 Tranche 2 which was fixed at Rs 5,923 per gram.
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It is pertinent to note that the investors will be compensated at a fixed rate of 2.50 per cent per annum. RBI will pay the compensation on the nominal value semi-annually.
According to RBI, a discount of Rs 50 per gram will be there for the investors applying for the Sovereign Gold Bond online and making the payment through digital means. This means that the value of the issue price of the SGB will be Rs 5,873 for those opting for digital mode to invest.
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Several banks, Stock Holding Corporation of India Ltd (SHCIL), designated post offices and recognised stock exchanges including the National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE) are selling the Sovereign Gold Bond to investors interested in the scheme.
Notably, the tenure of the SGB is eight years. However, there is an option of premature redemption after the fifth year which can be exercised on the day of the payable interest.
Investment limit for Sovereign Gold Bond Scheme 2023-24
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The minimum permissible investment in the Sovereign Gold Bond has been set to be one gram whereas the maximum limit of subscription can go up to 4 kg for individuals and 4 Kg for HUF. On the other hand, the investment limit is 20 Kg for trusts and other bodies per fiscal year (April-March).
Nish Bhatt, Founder & CEO, of Millwood Kane International, says, “The latest Sovereign Gold Bonds Series II fixed at ₹5873/gm, a ₹3 discount from previous tranches, will be ideal for investors willing to hold on to their investment for at least 5 years. Gold has historically served as a hedge against inflation and volatility. During the last year, the yellow metal has given a return of 13-15 per cent. It has given a 12 per cent return in dollars. Moving forward, gold prices may rise due to festive demand in India, so investors opting for SGBs should have a long-term investment horizon to maximize their benefits.”
