What are alternate options to Sovereign Gold Bonds to spend money on Gold?

What are alternate options to Sovereign Gold Bonds to spend money on Gold?


Because the Authorities has not issued new SGB points, many traders are in search of alternate options to Sovereign Gold Bonds to spend money on Gold. What are the choices?

Sovereign Gold Bonds have confirmed to be extremely profitable for gold traders, primarily as a result of their engaging options, together with a 2.5% curiosity payout, tax-free features upon maturity, and the upward pattern in gold costs. Nevertheless, the Authorities has not launched any new points for a number of months. Nevertheless, for a lot of months Authorities has not come out with new points. Therefore, persons are looking for alternate options to Sovereign Gold Bonds.

What are alternate options to Sovereign Gold Bonds to spend money on Gold?

This text doesn’t concentrate on the benefits and drawbacks of investing in gold. Fairly, it goals to supply an summary of the varied alternate options to Sovereign Gold Bonds.

Alternatives to Sovereign Gold Bonds

# Present Sovereign Gold Bonds

The prevailing Sovereign Gold Bonds (SGBs) can be found for buy on the secondary market. The value at which you should buy them shall be decided by the demand and provide. It is very important be aware that the curiosity funds you obtain shall be calculated based mostly on the unique challenge value fairly than the prevailing market value. As an illustration, if the problem value of an SGB was Rs. 6,000 and the present market value is Rs. 7,000, the curiosity payout of two.5% in your future holdings shall be based mostly on Rs. 6,000, not on the present value of Rs. 7,000.

The second essential issue to contemplate is the time to maturity. Since these are the sooner issued Sovereign Gold Bonds (SGBs), the holding interval shall be eight years from the date of challenge fairly than from the date of your buy. As an illustration, SGBFEB32IV was issued in February 2024, with a maturity date set for February 2032. Subsequently, no matter while you purchase this bond from the secondary market throughout the eight-year timeframe from February 2024 to February 2032, the maturity date stays February 2032 for you.

It’s important to grasp that when you retain the Sovereign Gold Bond (SGB) till its maturity, any features you understand shall be exempt from taxation. Conversely, do you have to select to promote the bond within the secondary market, the features shall be topic to a tax charge of 12.5% as long-term capital features (LTCG) if the holding interval exceeds one yr. If the holding interval is lower than one yr, the features shall be taxed based on your relevant revenue tax bracket as short-term capital features (STCG).

Beneath is the listing of SGBs obtainable from the secondary market (as of sixteenth Sept 2024).

Listing of Sovereign Gold Bonds in India 2015 – 2024
(www.basunivesh.com)
NSE Code Bond Particulars Subject Date Maturity Date Issued Value
SGBFEB32IV Sovereign Gold Bonds 2023-24-Sequence-IV twenty first Feb 2024 Feb-2032 6263
SGBDE31III Sovereign Gold Bonds 2023-24-Sequence-III twenty eighth Dec 2023 Dec-2031 6199
SGBSEP31II Sovereign Gold Bonds 2023-24-Sequence-II twentieth Sep 2023 Sep-2031 5873
SGBJUN31I Sovereign Gold Bonds 2023-24-Sequence-I twenty seventh Jun 2023 June-2031 5876
SGBMAR31IV Sovereign Gold Bonds 2022-23-Sequence-IV 14th Mar 2023 Mar-2031 5561
SGBDE30III Sovereign Gold Bonds 2022-23-Sequence-III twenty seventh Dec 2022 Dec-2030 5359
SGBAUG30 Sovereign Gold Bonds 2022-23-Sequence-II thirtieth Aug 2022 Aug-2030 5147
SGBJUN30 Sovereign Gold Bonds 2022-23-Sequence-I twenty eighth Jun 2022 Jun-2030 5041
SGBMAR30X Sovereign Gold Bonds 2021-22-Sequence-X eighth Mar 2022 Mar-2030 5059
SGBJAN30IX Sovereign Gold Bonds 2021-22-Sequence-IX 18th Jan 2022 Jan-2030 4736
SGBD29VIII Sovereign Gold Bonds 2021-22-Sequence-VIII seventh Dec 2021 Dec-2029 4741
SGBNV29VII Sovereign Gold Bonds 2021-22-Sequence-VII 2nd Nov 2021 Oct-2029 4711
SGBSEP29VI Sovereign Gold Bonds 2021-22-Sequence-VI seventh Sep 2021 Sep-2029 4682
SGBAUG29V Sovereign Gold Bonds 2021-22-Sequence-V seventeenth Aug 2021 Aug-2029 4740
SGBJUL29IV Sovereign Gold Bonds 2021-22-Sequence-IV twentieth Jul 2021 Jul-2029 4757
SGBJU29III Sovereign Gold Bonds 2021-22-Sequence-III eighth Jun 2021 Jun-2029 4839
SGBJUN29II Sovereign Gold Bonds 2021-22-Sequence-II 1st Jun 2021 Jun-2029 4792
SGBMAY29I Sovereign Gold Bonds 2021-22-Sequence-I twenty fifth Might 2021 Might-2029 4727
SGBMR29XII Sovereign Gold Bonds 2020-21-Sequence-XII ninth Mar 2021 Mar-2029 4612
SGBFEB29XI Sovereign Gold Bonds 2020-21-Sequence-XI ninth Feb 2021 Feb-2029 4862
SGBJAN29X Sovereign Gold Bonds 2020-21-Sequence-X nineteenth Jan 2021 Jan-2029 5054
SGBJAN29IX Sovereign Gold Bonds 2020-21-Sequence-IX fifth Jan 2021 Jan-2029 4950
SGBN28VIII Sovereign Gold Bonds 2020-21-Sequence-VIII 18th Nov 2020 Nov-2028 5127
SGBOC28VII Sovereign Gold Bonds 2020-21-Sequence-VII twentieth Oct 2020 Oct-2028 5001
SGBSEP28VI Sovereign Gold Bonds 2020-21-Sequence-VI eighth Sep 2020 Sep-2028 5067
SGBAUG28V Sovereign Gold Bonds 2020-21-Sequence-V eleventh Aug 2020 Aug-2028 5284
SGBJUL28IV Sovereign Gold Bonds 2020-21-Sequence-IV 14th Jul 2020 Jul-2028 4802
SGBJUN28 Sovereign Gold Bonds 2020-21-Sequence-III sixteenth Jun 2020 Jun-2028 4627
SGBMAY28 Sovereign Gold Bonds 2020-21-Sequence-II twenty second Might 2020 Might-2028 4540
SGBAPR28I Sovereign Gold Bonds 2020-21-Sequence-I twenty eighth Apr 2020 Apr-2028 4589
SGBMAR28X Sovereign Gold Bonds 2019-20-Sequence-X eleventh Mar 2020 Mar-2028 4210
SGBFEB28IX Sovereign Gold Bonds 2019-20-Sequence-IX eleventh Feb 2020 Feb-2028 4020
SGBJ28VIII Sovereign Gold Bonds 2019-20-Sequence-VIII twenty first Jan 2020 Jan-2028 3966
SGBDC27VII Sovereign Gold Bonds 2019-20-Sequence-VII tenth Dec 2019 Dec-2027 3745
SGBOCT27VI Sovereign Gold Bonds 2019-20-Sequence-VI thirtieth Oct 2019 Oct-2027 3785
SGBOCT27 Sovereign Gold Bonds 2019-20-Sequence-V fifteenth Oct 2019 Oct-2027 3738
SGBSEP27 Sovereign Gold Bonds 2019-20-Sequence-IV seventeenth Sep 2019 Sep-2027 3840
SGBAUG27 Sovereign Gold Bonds 2019-20-Sequence-III 14th Aug 2019 Aug-2027 3449
SGBJUL27 Sovereign Gold Bonds 2019-20-Sequence-II sixteenth Jul 2019 Jul-2027 3393
SGBJUN27 Sovereign Gold Bonds 2019-20-Sequence-I eleventh Jun 2019 Jun-2027 3146
SGBFEB27 Sovereign Gold Bonds 2018-19-Sequence-VI twelfth Feb 2019 Feb-2027 3276
SGBJAN27 Sovereign Gold Bonds 2018-19-Sequence-V twenty second Jan 2019 Jan-2027 3164
SGBDEC26 Sovereign Gold Bonds 2018-19-Sequence-IV 1st Jan 2019 Jan-2027 3069
SGBNOV26 Sovereign Gold Bonds 2018-19-Sequence-III thirteenth Nov 2018 Nov-2026 3133
SGBOCT26 Sovereign Gold Bonds 2018-19-Sequence-II twenty third Oct 2018 Oct-2026 3096
SGBMAY26 Sovereign Gold Bonds 2018-19-Sequence-I 4th Might 2018 Might-2026 3064
SGBJAN26 Sovereign Gold Bonds 2017-18-Sequence-XIV 1st Jan 2018 Jan-2026 2831
SGBDEC2513 Sovereign Gold Bonds 2017-18-Sequence-XIII twenty sixth Dec 2017 Dec-2025 2816
SGBDEC2512 Sovereign Gold Bonds 2017-18-Sequence-XII 18th Dec 2017 Dec-2025 2840
SGBDEC25XI Sovereign Gold Bonds 2017-18-Sequence-XI eleventh Dec 2017 Dec-2025 2902
SGBDEC25 Sovereign Gold Bonds 2017-18-Sequence-X 4th Dec 2017 Dec-2025 2911
SGBNOV25IX Sovereign Gold Bonds 2017-18-Sequence-IX twenty seventh Nov 2017 Nov-2025 2914
SGBNOV258 Sovereign Gold Bonds 2017-18-Sequence-VIII twentieth Nov 2017 Nov-2025 2911
SGBNOV25 Sovereign Gold Bonds 2017-18-Sequence-VII thirteenth Nov 2017 Nov-2025 2884
SGBNOV25VI Sovereign Gold Bonds 2017-18-Sequence-VI sixth Nov 2017 Nov-2025 2895
SGBOCT25V Sovereign Gold Bonds 2017-18-Sequence-V thirtieth Oct 2017 Oct-2025 2921
SGBOCT25IV Sovereign Gold Bonds 2017-18-Sequence-IV twenty third Oct 2017 Oct-2025 2937
SGBOCT25 Sovereign Gold Bonds 2017-18-Sequence-III sixteenth Oct 2017 Oct-2025 2906
SGBJUL25 Sovereign Gold Bonds 2017-18-Sequence-II twenty eighth Jul 2017 Jul-2025 2780
SGBMAY25 Sovereign Gold Bonds 2017-18-Sequence-I twelfth Might 2017 Might-2025 2901
SGBMAR25 Sovereign Gold Bonds-2016-17-Sequence-IV seventeenth Mar 2017 Mar-2025 2893
SGBNOV24 Sovereign Gold Bonds-2016-17-Sequence-III seventeenth Nov 2016 Nov-2024 2957
SGBSEP24 Sovereign Gold Bonds-2016-17-Sequence-II twenty third Sep 2016 Sep-2024 3150

# Gold ETF or Gold Change Traded Funds

You should purchase a minimal of 1 unit of Gold ETF and the underlying asset is gold. You must have a Demat account to purchase and promote the gold ETF. There are at the moment 16 Gold ETFs obtainable within the secondary market. The taxation of Gold ETF is – In the event you promote it inside a yr, then the acquire is taxed as per your tax slab. Nevertheless, when you promote it after a yr, then the acquire is taxed at 12.5%.

Gold ETF Image Quantity
(as of sixteenth Sept 2024)
LICMFGOLD 46
IVZINGOLD 27
GOLDETF 90,382
GOLDCASE 2,10,789
EGOLD 6,419
AXISGOLD 52,927
QGOLDHALF 6,994
GOLD1 1,04,156
BSLGOLDETF 15,495
GOLDIETF 2,23,764
GOLDBEES 25,37,782
HDFCGOLD 3,38,567
SETFGOLD 4,78,082
GOLDSHARE 1,46,774
GOLDETFADD 1,513
BBNPPGOLD 102

# Gold Mutual Funds

Gold Mutual Funds usually spend money on Gold ETFs to offer liquidity to their traders. For instance, SBI Gold Fund will spend money on the SBI Gold ETF. You possibly can spend money on Gold Mutual Funds like different mutual funds and no want to fret about liquidity points (that are there in Gold ETFs). Nevertheless, when it comes to price, Gold Mutual Funds are costlier than the Gold ETF. Therefore, as a result of this bit larger price issue, your returns could not really match the underlying Gold ETF returns. However it’ll resolve the liquidity challenge. Beneath are the Gold Mutual Funds at the moment obtainable in India. The taxation of Gold Mutual Funds is – In the event you offered inside two years (24 months), then the acquire is taxed as per your tax slab. Nevertheless, when you offered it after two years (24 months), then the acquire is taxed at 12.5%.

Gold Mutual Funds Identify
(as of sixteenth Sept 2024)
Benchmark
Aditya Birla Solar Life Gold Fund Home Value of Gold
Axis Gold Fund Home Value of Gold
DSP World Gold FoF FTSE Gold Mines Index
Edelweiss Gold and Silver ETF FoF Home Gold and Silver Costs
HDFC Gold Fund Home Value of Gold
ICICI Prudential Common Gold Financial savings Fund (FOF) Home Value of Gold
ICICI Prudential Strategic Metallic and Vitality Fairness FoF NYSE Arca Gold Miners Index(50.00), S&P Oil & Gasoline Exploration & Manufacturing Choose Trade(50.00)
Invesco India Gold ETF FoF Home Value of Gold
Kotak Gold Fund Home Value of Gold
LIC MF Gold ETF FoF Home Value of Gold
Motilal Oswal Gold and Silver ETFs FoF Home Gold and Silver Costs
Nippon India Gold Financial savings Fund Home Value of Gold Index
Quantum Gold Financial savings Fund Home Value of Gold
SBI Gold Fund Home Value of Gold
UTI Gold ETF FoF Home Value of Gold

# What about Bodily Gold?

If the aim is trying Gold as an funding, then higher to keep away from investing via bodily mode. The explanations are – Secure protecting danger, purity danger and shopping for and promoting value partiy. Nevertheless, if the aim is on your personal utilization, then you’ll be able to discover bodily gold. However as an funding, higher to keep away from via bodily gold mode.

Lastly, sharing the taxation of gold submit Price range 2024.

Taxation of Gold In India 2024

Refer my earlier posts on Gold at “Weblog Posts on Gold“.

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