Sovereign Gold Bond Offers 302% Return: Key Details on Redemption
302% return on SGB premature redemption date: Gold bond turns Rs 1 lakh investment into Rs 4.02 lakh
The Economic TimesImage: The Economic Times
The Reserve Bank of India has set the premature redemption price for the Sovereign Gold Bond (SGB) 2019-20 Series-V at ₹15,009 per unit, allowing investors to redeem from April 15, 2026. This translates to a 302% return on an initial investment of ₹1 lakh, potentially increasing its value to ₹4.02 lakh.
- 01Premature redemption price for SGB 2019-20 Series-V is set at ₹15,009 per unit.
- 02Investors can redeem the bonds starting April 15, 2026.
- 03The bond offers a total return of nearly 302% on the initial investment.
- 04SGBs provide a fixed interest rate of 2.5% per annum.
- 05The bonds are issued by the Reserve Bank of India on behalf of the Government of India.
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The Reserve Bank of India (RBI) has announced the premature redemption price for the Sovereign Gold Bond (SGB) 2019-20 Series-V, which will be ₹15,009 per unit effective from April 15, 2026. This price reflects a 302% return on the initial investment of ₹1 lakh, which would grow to approximately ₹4.02 lakh. The SGB was issued at ₹3,738 per gram for online purchases, with a ₹50 discount for offline buyers. Investors will also receive a fixed interest rate of 2.5% per annum, credited semi-annually. The redemption price is calculated using the average closing price of gold for the three working days prior to redemption. SGBs serve as a government-backed alternative to physical gold, offering a secure investment option.
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Investors in the Sovereign Gold Bond will see significant returns on their investments, enhancing their financial portfolio and encouraging more individuals to consider gold bonds as a viable investment option.
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