Sovereign Gold Bonds can be bought from Zerodha either from the secondary market where it gets listed after 10-15 days of issue or from the primary market through "Coin" (Coin is a platform of Zerodha used for buying and selling government securities) at the time of issue. The minimum quantity is 1 gram or 1 unit of the SGB and the maximum is 4kg or 4000 units for an individual.
Buying SGB (Sovereign Gold Bond) is the best way to invest in gold and diversify your portfolio. Gold is also treated as a hedge against inflation hence having gold in your portfolio is considered an essential part of every investor's portfolio. Sovereign Gold bonds are backed by the Government of India hence the chances of default are next to impossible. These bonds also provide a 2.5% Interest on the face value of the bonds, credited into your account semi-annually.
Buying SGB is very simple and it can be bought online from Zerodha. You will also get a discount of Rs.50 per gram if you apply from any online method at the time of issue. You can buy SGB from the secondary market as well as it is listed on the stock exchanges after 10-15 days from the date of issue.
There are 2 ways to buy SGB from Zerodha-
The following steps can be followed to buy it from the secondary market:
To find out which SGB to purchase, check the 'Month', 'Year of maturity', and the 'Series of the Bond' written in its name. Now you can choose from the results which series of SGB you want to buy from.
For Example in the Bond "SGBSEP28VI-GB" the First 3 letters "SGB" denotes its name "Sovereign Gold Bond"
the next 3 alphabets "SEP" denotes the month (September) on which it was issued. The following 2 numbers describe the year of maturity, "28" means that this bond will mature in "2028". The last two alphanumeric numbers describe the tranche of the bond "VI", in this case, describes that it was the 6th tranche of the year.
By this method, you will be able to buy the SGB at the time of issue at the fixed issue price. The bonds will be credited into your Zerodha Account within 3 days and they will be listed on NSE(National Stock Exchange) within 10-15 days where you can sell them anytime if you want to.
If the SGB's are held till maturity then they will be exempt from any Capital Gains Tax.
Yes! Even if you buy a SBG from the secondary market, you are entitled to the interest. If the Bond is of the February issue, the interest will be paid after 6 months from February which will be in August. So if you buy the SGB even in July, you will be entitled to the full half-yearly interest.
If I buy sovereign gold bond from secondary market, then will I get half yearly interest??
If we buy sgb from secondary market, will we receive half yearly interest ??