Sovereign Gold Bond investors got bumper profits, first installment investors became rich. Loktej Business News
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New Delhi, 28 November (Hindustan Reporter). The first tranche of Sovereign Gold Bond (SGB) is scheduled to mature on November 30. The first tranche of SGB was issued in 2015, which will mature on Thursday after a maturity period of 8 years. Investors of this installment of SGB have made a profit of Rs 3,448 per gram on gold investment. This bond has given a Compound Annual Growth Rate (CAGR) return of 10.88 percent to its investors.
According to the Reserve Bank of India, Rs 6,132 per unit (gram) will be paid for the final redemption of the first installment of SGB. This price of SGB has been calculated on the basis of the average closing price of gold during the week of 20 to 24 November. In the first installment of Sovereign Gold Bond that came in 2015, investors had to pay Rs 2,684 per unit (gram). In this way, after maturity, investors are getting a profit of Rs 3,448 per unit (gram). Investors investing in the first installment of SGB have also been given interest of 2.75 percent on half yearly basis. However, in the installment of Sovereign Gold Bond that came after 2015, the interest rate was reduced from 2.75 percent to 2.50 percent.
Sovereign Gold Bond is a security issued by the Government of India as an alternative to physical gold, which is issued to investors through the Reserve Bank of India. The maturity period of this bond is 8 years. However, payment can be taken by surrendering the bond any time after 5 years of its issuance. Through Demat, Sovereign Gold Bond can also be traded on the stock exchange and can also be transferred to another investor.
After the maturity of the Sovereign Gold Bond, the investors investing in it are paid on the basis of the average closing price of the gold market. By investing in it, investors get the full benefit of investing in gold, because unlike physical gold, they neither have to pay making charges nor have to worry about the purity of gold. Interest on its investments is also paid by the government to the investors on half yearly basis. In the first installment of Sovereign Gold Bond, the interest rate was fixed at 2.75 percent, which was later changed to 2.50 percent. In this bond, investors can invest in gold units of minimum one gram and maximum of 4 kilograms.
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