Abhinav Angirish, founder of www.investonline.in, said an investor should have both equity and gold in their portfolio, but in proportions which is in line with their goals.
10 Things To Know About Sovereign Gold Bond Scheme, 2018-19-Series-I
1) These bonds are being sold through banks, Stock Holding Corporation of India Limited (SHCIL), designated post offices and recognised stock exchanges. Many banks and brokerages are offering investors the option to invest in Sovereign Gold Bond Scheme through online mode. Sovereign gold bond are available for subscription in both demat and paper form.
2) For those who want to subscribe to Sovereign Gold Bond Scheme online and pay through digital mode, the government is offering discount. The issue price of Sovereign Gold Bonds will be Rs 50 per gram less.These bonds offer a fixed interest of 2.50 per cent per annum payable semi-annually on the nominal value of the bonds.
3) The bonds are denominated in multiples of gram(s) of gold with a basic unit of 1 gram.
4) In case of Sovereign Gold Bonds 2018-19 - Series I scheme the issue price is Rs 3,114 per gram of gold.
6) While the minimum permissible investment is 1 gram of gold, the maximum limit is 4 kg for an individual. The tenor of the Sovereign Gold Bonds is eight years with exit option from the fifth year onwards. The redemption price will be based on prevailing gold prices.
7) The bonds will be listed on the exchanges so investors may get an option to exit even before five years if volumes are good.
8) The gold bonds are available in demat format, so investors will not have to worry about storage unlike physical gold.
9) Sovereign gold bonds can be used as collateral for loans.
10) Interest earned on gold bonds will be added to the income and taxed according to respective tax slabs. But no TDS or tax deducted at source is applicable on interest. No capital gains tax is applicable if held till maturity.