Gold is a great investment that acts as a store of value and also as a hedge from inflation. Investing in SGB is the best way to invest in Gold. You can buy these Bonds from Zerodha easily by following some simple steps.
Buying Sovereign Gold Bonds is the best way to invest in Gold. They come with many benefits such as these are Tax-Free if held till maturity. These bonds also come with a 2.5% coupon rate payable semi-annually which is an added benefit. You can get a discount of Rs 50 per gram if applied through any online method. SGBs are Sovereign Bonds which means that they come with the trust of the Indian Government. This makes them a 99.99% risk-free investment.
These bonds are periodically launched in tranches by the RBI. You can easily buy them online through a stock broker and keep them safely in your Demat account.
Some points to remember before applying for an SGB.
Now that you know the basics, Let’s see what are the steps to buy these SGB (Sovereign Gold Bonds) from Zerodha.
By following the above steps, you can buy Sovereign Gold Bonds, from Zerodha easily. The total amount required to purchase the Bonds should be there in your account on the date of issue, therefore remember to Fund your Zerodha account adequately or else the order for the SGB will get canceled and you won’t be able to purchase it from the Primary issue and get a discount of Rs 50 per gram.
Buying Sovereign Gold Bond from Zerodha is a very simple and seamless process. If you already have an account with Zerodha, you are eligible to buy any quantity of SGB till 4 kg. You can apply from the Primary issue or buy these Bonds from the stock exchanges after it gets listed. This usually happens after 10-14 days from the date of the issue.
SGB are essentially gold-backed securities issued by the government. It is one of the most profitable gold investments. They are only released twice a year, with the date typically unknown in advance by the government. It is one of the most secure alternatives for individuals because it is handled digitally, and the Reserve Bank of India (RBI) issues these on behalf of the Indian government.