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Sovereign gold bonds:

Sovereign Gold Bonds (SGBs) are government securities issued by the Reserve Bank of India (RBI) and denominated in grams of gold. They offer a secure and efficient way to invest in gold without the hassles of physical storage.

Key Features :

  • Safety: No risks associated with storing physical gold.
  • Interest Income: Earn fixed interest along with potential gold price appreciation.
  • Liquidity: Tradable on stock exchanges.
  • Tax Efficiency: Capital gains tax exempt on redemption.

Benefits :

  • Tax Savings: Defers or avoids capital gains tax.
  • Secure Investment: Backed by government entities.
  • Fixed Returns: Annual interest income.