The government has closed the Sovereign Gold Bond (SGB) scheme. This scheme received a very good response from investors. The government last announced a new installment of SGB in February 2024. This means that the new installment of this scheme has not come in the last one year. Experts believe that the scheme is no longer expected to continue. The question is, what options do the investors who have invested in the old installments of this scheme?
The reason for investment of investment in SGB
Tradegini’s COO Trivesh D said that investors who gave the Sovereign Gold Bond Scheme (Sovereign Gold Bond) Invested in, they should maintain their investment till maturity. The reason for this is that 2.5 percent interest is available annually on investment in this scheme. Also, there is no tax on the capital gains on maintaining investment till maturity. However, he said that if the investors see any other option to earn more profits, then they can sell SGB in the secondary market.
Gold ETF a great option
He said that before doing so, investors have to take into account their long term investment goals. They also have to consider how much money they need now. Investors who are waiting for the new installment of SGB should now consider other investment options in gold. He said, “Gold ETF is a great investment option. It is easy to invest and liquidity is also good.”
You can also invest in gold mutual funds
Investors can also invest in gold mutual funds. The second option is to invest in SGB in secondary market. Trivesh said, “SGB can be invested through the secondary market. But, there is a problem with liquidity.” He said that it is easy to invest in gold ETF and gold mutual funds compared to this. Some people like to buy gold jewelery to invest in gold. After hallmarking started, purity is no longer a major issue, but keeping physical gold safely is a large challenge.
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Take care of these things in investment
Experts believe that investing in such options today is beneficial, in which money can be withdrawn easily if needed. Gold ETFs and Gold Mutual Funds seem to be the right choice on this scale. Trivesh said, “India is a country in which there has been a tradition of buying gold. Earlier people used to buy jewelery. Now they are investing in gold ETF. Increased investment in gold ETFs indicates this.” Investment in Gold ETF in 2022 was Rs 460 crore, which increased to Rs 9,225 crore in 2024.