Sovereign Gold Bonds Offer 386% Return by 2026
386% return on SGB final redemption date: Gold bond turns Rs 1 lakh investment into Rs 4.86 lakh
The Economic Times
Image: The Economic Times
The Reserve Bank of India announced that the Sovereign Gold Bonds (SGB) 2018-19 Series-I will yield a 386% return by its final redemption date on May 4, 2026. An investment of ₹1 lakh will grow to approximately ₹4.86 lakh, based on the final redemption price of ₹14,901 per unit.
- 01Sovereign Gold Bonds 2018-19 Series-I will mature on May 4, 2026.
- 02The final redemption price is set at ₹14,901 per unit.
- 03Investors can expect a return of 386% on their initial investment.
- 04Interest on the bonds is paid semi-annually at a rate of 2.50%.
- 05The minimum investment in SGB is one gram of gold.
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The Reserve Bank of India (RBI) has confirmed that the final redemption price for the Sovereign Gold Bonds (SGB) 2018-19 Series-I, maturing on May 4, 2026, will be ₹14,901 per unit. This price reflects a significant return of 386% on the initial investment of ₹3,064 per gram, translating a ₹1 lakh investment into about ₹4.86 lakh. The calculation is based on the average closing price of gold over the last three business days before redemption. Additionally, these bonds yield an interest rate of 2.50% per annum, credited semi-annually to investors' bank accounts. SGBs serve as a government-backed alternative to physical gold, allowing investors to hold gold in a secure, digital format. The minimum investment is one gram, while the maximum is 4 kg for individuals and 20 kg for trusts per fiscal year.
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Investors in Sovereign Gold Bonds can expect significant financial gains, enhancing their investment portfolios.
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