The SGB 2017-18 Series I was issued with an 8-year maturity period, offering investors an annual interest of 2.5% on the nominal value, payable semi-annually. The final redemption amount is tax-free, providing a lucrative investment option for those seeking to capitalise on gold’s price appreciation. For instance, an investment of ₹1,47,550, equivalent to 50 grams of gold at the issue price, would now yield ₹4,74,300, resulting in a profit of ₹3,26,750.
The SGB scheme, launched by the Government of India in 2015, was designed to provide an alternative to physical gold, offering investors the opportunity to earn interest while benefiting from gold price movements. The RBI’s final redemption price reflects the robust performance of gold in recent years, underscoring the effectiveness of the SGB as a long-term investment vehicle.
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