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Investing

Sovereign Gold Bond

Also known as: SGB

Government-issued bonds that track the price of gold and also pay a small yearly interest.

SGBs let you invest in gold without holding physical metal. Their value moves with gold prices and you skip storage and purity worries.

On top of gold's price movement, they pay around 2.5% annual interest, which physical gold never does.

Held till maturity, the capital gains are tax-free, making them one of the cleanest ways to own gold in India.

For example

Buy SGBs instead of a gold chain and you get gold's price gains, plus 2.5% yearly interest, with no making charges or locker fees.

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