SGB – Asset allocation through Gold.

1st tranch of sovereign Gold Bond (Issued in 2015) has completed its 8 years tenure on 30th Nov 2023. The issue price of the SGB -2015 was ₹ 2684 per gm and redemption price is 6079, so in 8 year period that is an absolute returns of about 130% or CAGR of 11% per annum.Plus there has been a 2.75% annual additional interest payout over the years as well. An Investment of ₹ 1 Lakhs made in the first tranche of the SGB has fetched ₹ 2.26 Lakhs plus interest of about ₹ 22,000.With Sharp rise in gold prices RBI has limited SGB issurances.they were own to four last fiscal from 10 in FY 22. This fiscal it has issued only two SGB at ₹ 5923 and 5926 per gram. It will also help you for asset allocation. You can take loan (If it’s in Demat form) or you can gift it to your near and dear ones. At the same time you shouldn’t worry about safety and purity also. We believe it’s worth considering SGB for investment in Gold. We will update you on future issuances of SGB. ………………. A blog written for investor awareness and education Santosh G Akerkar.

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