Sovereign Gold Bonds

A PROJECT REPORT ON
“A STUDY ON INVESTOR PRESPECTIVE TOWARDS INVESTMENT IN

SOVEREIGN GOLD BONDS”
A PROJECT SUBMITTED TO
THE UNIVERSITY OF MUMBAI FOR PARTIAL COMPLETION OF THE BACHELOR

OF MANAGEMENT STUDIES
UNDER THE FACULTY OF MANAGEMENT
SUBMITTED BY
AMBIKA SUNIL SINGH
ROLL NO: MF20068
UNDER THE GUIDANCE OF
MR.MUKUL KULKARNI
SEMESTER VI
ACADEMIC YEAR 2022-2023
THE S.I.A. COLLEGE OF HIGHER EDUCATION
PLOT NO-88, MIDC RESIDENTIAL ZONE, GYMKHANA ROAD, NEAR BALAJI

MANDIR, SAGARLI, DOMBIVLI (EAST) - 421203
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THE S.I.A. COLLEGE OF HIGHER EDUCATION
DOMBIVLI (EAST)
CERTIFICATE
This is to certify that Mrs.Ambika Sunil Singh, Roll No: MF20068 of Third Year of
Bachelor of Management Studies Semester VI (2022-2023) has successfully completed the
project on , ”A Study on Investor Prespective towards Investment in Sovereign Gold
Bonds” under the guidance of Mr . Mukul Kulkarni as per the Mumbai University Syllabus.
COURSE CO-ORDINATOR PRINCIPAL
PROJECT GUIDE EXTERNAL EXAMINE
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DECLARATION
I the undersigned Miss. Ambika Sunil Singh hereby, declare that the work embodied in this
project work titled “A Study on Investors Prespective towards investment in Sovereign
Gold Bonds” forms my own contribution to the research work carried out under the
guidance of Mr. Mukul Kulkarni is a result of my own research work and has not been
previously submitted to any other University for any other Degree or Diaploma to this or
any other University.
Whatever reference has been made to previous works of others, it has been clearly indicated
as such and included in the bibliography.
I, hereby further declare that all information of this project has been obtained and presented
in accordance with academic rules and ethical conduct.
(SIGNATURE OF STUDENT)
Ambika Sunil Singh
(SIGNATURE OF THE GUIDE)
Assistant Prof. Mukul Kulkarni
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ACKNOWLEDGEMENT
To list who all have helped me is difficult because they are so numerous and depth is so
enormous.
I would like to acknowledge the following as being idealistic channels and fresh dimension
in the completion of this project.
I take this opportunity to thank the UNIVERSITY OF MUMBAI for giving me chance to
do this project.
I would like to thank my Principal, DR.PADMAJA ARVIND Ma’am for providing the
necessary facilities required for completion of this project.
I take this opportunity to thank our Coordinator, MRS. BOOMA HALPETH Ma’am, for
her moral support and guidance.
I would also like to express my sincere gratitude towards my project guide MR. MUKUL
KULKARNI Sir whose guidance and care made the project successful.
I would like to thank my College Library, and Librarian MRS.BHARATI RAO Ma’am
for having provided various reference books and magazines related to my project.
Lastly, I would like to thank each and every person who directly or indirectly helped me in
the completion of the project, especially my Parents and Peers who supported me
throughout my project.
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TABLE OF CONTENT
Sr. No Title Page No
1. Introduction 6-32
2. Review of Literature 33-35
3. Research Methodology 36-39
4. Data Analysis and Interpretation 40-56
5. Recommendation 57-58
6. Conclusion 59-60
7. Bibliography 61-62
8. Annexure 63-66
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CHAPTER 1: OVERVIEW OF SOVEREIGN GOLD BONDS
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1.1 Introduction
Sovereign Gold Bonds (SGBs) are gold bonds issued by the Reserve Bank of India (RBI) on behalf of the
Government of India. SGBs are debt securities issued by the government denominated in multiples of grams
of gold. They are a substitute investment for physical gold and are traded on the stock exchange market. To
invest in SGBs, investors have to pay the issuing amount in cash to an authorized Securities and Exchange
Board of India (SEBI) broker, and the money is deposited into the investor’s registered bank account. SGBs
are kept in an investor’s demat account, eliminating the need for storage fees
The 2.50% interest on SGBs makes this option attractive because investors earn a passive income on their
gold, which is directly credited to the bondholders’ accounts Investors can buy and resell SGBs on the stock
exchange, and it is recommended to look for a series of bonds with high liquidity if intending to resell.
The RBI issues SGBs in tranches, and investors can check the list of SGBs issued till date with information
about their expiry date, premature redemption date, trading symbols, interest payment dates, and issue price
on the RBI website.
SGBs are a perfect alternative to investment in physical gold, and they eliminate several risks associated
with physical gold. Sovereign Gold Bonds (SGB) are government securities denominated in grams of gold.
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They are issued by the Reserve Bank of India (RBI) on behalf of the Government of India. SGBs offer a safe
and convenient way to invest in gold without the need to hold physical gold. The benefits of investing in
SGBs include the assurance of safety as they are guaranteed by the government of India.
Additionally, since investors do not have to hold the gold in physical form, they are protected from theft,
paying locker charges to store gold, and any other risks that come with holding gold in its physical form.
SGBs are tradable on exchanges and have easy exit options after 5 years. The capital gains tax arising on
redemption of SGB to an individual has been exempted, and the indexation benefits will be provided to
long-term capital gains arising to any person on transfer of bond. SGBs also pay an annual interest of 2.50%
to investor.
Investing in SGBs is an excellent way for investors of all experience levels to diversify and strengthen their
portfolios. Benefits of purchasing SGBs include higher ROI compared to gold bar and coin purchases, no
storage fees, passive income, and tax exemption on maturity amount capital gains. Investing in gold is much
more easy and convenient now, Sovereign Gold Bonds (SGBs) are the perfect alternative to investment in
physical gold. With these bonds, you can enjoy capital appreciation and also earn interest every year. These
bonds, issued by the Government of India, also eliminate several risks associated with physical gold.
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1.2 Meaning
Sovereign Gold Bonds (SGBs) are bonds issued by the Reserve Bank of India (RBI) that use gold as an
under-lying asset. They were first issued in November 2015. SGBs are RBI-mandated certificates issued
against grams of gold, allowing individuals to invest in gold without the strain of safekeeping their physical
asset. SGBs are guaranteed by the government of India, making them a safe investment. Since investors do
not have to hold the gold in physical form, they are protected from theft, paying locker charges to store
their gold, and any other risks that come with holding gold in its physical form.
Investing in SGBs is an excellent way for investors of all experience levels to diversify and strengthen their
portfolios. Benefits of purchasing SGBs include higher ROI compared to gold bar and coin purchases, no
storage fees, passive income, and tax exemption on maturity amount capital gains. SGBs act as a secure
investment tool among individuals, as gold prices are less susceptible to market fluctuations. SGBs are also
tradable on the exchange and have easy exit options after five years.
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1.3 History of Sovereign Gold Bonds
Sovereign Gold Bonds (SGBs) are government securities issued by the Reserve Bank of India (RBI) on
behalf of the Government of India. The scheme was launched in November 2015 under the Gold
Monetisation Scheme to provide people with an alternative option to holding physical gold. SGBs are a way
to invest in gold without actually owning gold physically.
They are issued as a paperback or a digital gold bond certificate and are denominated in grams of gold. SGBs
are guaranteed by the government of India, making them safe investments. They also eliminate several risks
associated with physical gold, such as theft, paying locker charges to store gold, and any other risks that
come with holding gold in its physical form. The tenure of the SGB is between a minimum of 5 to 7 years,
and units can be liquidated anytime. They carry a sovereign guarantee both on the capital invested and the
interest earned. Investors can apply for SGBs through scheduled commercial banks, designated post offices,
and other authorised agents. The investment limit for individuals is 4 kg of gold per fiscal year. The interest
rate on SGBs is fixed at 2.5% per annum, payable semi-annually on the nominal value of the investment.
The bonds also offer capital appreciation, and investors can exit from the bond from the fifth year and sixth
month onwards.
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1.4 Features
Based on the past 44 years of gold data, how much returns can we expect from a sovereign gold bond
investment? All are blindly eager to invest in Sovereign Gold Bonds. However, many do not understand
the volatility of gold and how much we can expect from gold.
 Tenure of the Bond
The tenor of the Bond will be for a period of 8 years with an exit option from the 5th year to be exercised
on the interest payment dates. Hence, after the 5 years onward you can redeem it on the 6th, 7th, or at
maturity of the 8th year. Before that, you can’t redeem.RBI/depository shall inform the investor of the date
of maturity of the Bond one month before its maturity.
 Minimum and Maximum investment
You have to purchase a minimum of 1 gram of gold. The maximum amount subscribed by an entity will
not be more than 4 kgs per person per fiscal year (April-March) for individuals and HUF and 20 kg for
trusts and similar entities notified by the government from time to time per fiscal year (April – March). In
the case of joint holding, the investment limit of 4 kgs will be applied to the first applicant only. The annual
ceiling will include bonds subscribed under different tranches during initial issuance by the Government
and those purchased from the secondary market. The ceiling on investment will not include the holdings as
collateral by banks and other Financial Institutions.
 Interest Rate
You will receive a fixed interest rate of 2.50% per annum payable semi-annually on the nominal value.
Such interest rate is on the value of money you invested initially but not on the bond value as on date of
interest payout. Interest will be credited directly to your account which you shared while investing.
 Issue Price
The nominal value of the bond is based on the simple average closing price [published by the India Bullion
and Jewellers Association Ltd (IBJA)] for gold of 999 purity of the last three business days of the week
preceding the subscription period.
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 Payment Option
Payment shall be accepted in Indian Rupees through cash up to a maximum of Rs.20,000/- or Demand
Drafts or Cheque or Electronic banking. Where payment is made through cheque or demand draft, the same
shall be drawn in favor of receiving an office.
 Issuance Form
The Gold bonds will be issued as Government of India Stock under GS Act, 2006. The investors will be
issued a Holding Certificate for the same. The Bonds are eligible for conversion into Demat form.
 Loan against Bonds
The Bonds may be used as collateral for loans. The Loan to Value ratio will be as applicable to ordinary
gold loan mandated by the RBI from time to time. The lien on the Bonds shall be marked in the depository
by the authorized banks. The loan against SGBs would be subject to the decision of the lending
bank/institution, and cannot be inferred as a matter of right by the SGB holder.
 Liquidity of the Bond
As I pointed out above, after the 5th year onwards you can redeem the bond in the 6th or 7th year. However,
the bond is available to sell in the secondary market (stock exchange) on a date as notified by the RBI. Hence,
you have two options. Either you can redeem it in the 6th or 7th year or sell it secondary market after the
notification of RBI. Do remember that the redemption price will be in Indian Rupees based on the previous
week’s (Monday-Friday) simple average of the closing price of gold of 999 purity published by IBJA.
 Nomination
You can nominate or change the nominee at any point in time by using Form D and Form E. An individual
Non – resident Indian may get the security transferred in his name on account of his being a nominee of a
deceased investor provided that:
 The Non-Resident investor shall need to hold the security till early redemption or till maturity, and
 The interest and maturity proceeds of the investment shall not be repatriable.
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 Transferability
The Bonds shall be transferable by execution of an Instrument of transfer as in Form ‘F’, in accordance
with the provisions of the Government Securities Act, 2006 (38 of 2006) and the Government Securities
Regulations, 2007, published in part 6, Section 4 of the Gazette of India dated December 1, 2007.
1.5 Who can invest?
Resident Indian entities including individuals (in his capacity as such individual, or on behalf of a minor
child, or jointly with any other individual.), HUFs, Trusts, Universities, and Charitable Institutions can invest
in such bonds.Hence, NRIs are not allowed to participate in the Sovereign Gold Bond Scheme.
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1.6 How to redeem Sovereign Gold Bond?
As I explained above, you have the option to redeem only on 6th, 7th and 8th year (automatic and end of
bonds tenure). Hence, there are two methods one can redeem Sovereign Gold Bonds. Explaining both as
below.
a. At the maturity of the 8th year-The investor will be informed one month before maturity regarding
the ensuing maturity of the bond. On the completion of the 8th year, both interest and redemption
proceeds will be credited to the bank account provided by the customer at the time of buying the
bond. In case there are changes in any details, such as account number, email ids, then the investor
must intimate the bank/SHCIL/PO promptly.
b. Redemption before maturity-If you planned to redeem before maturity i.e 8th year, then you can
exercise this option on 6th or 7th year. You have to approach the concerned bank/SHCIL
offices/Post Office/agent 30 days before the coupon payment date. Request for premature
redemption can only be entertained if the investor approaches the concerned bank/post office at
least one day before the coupon payment date. The proceeds will be credited to the customer’s bank
account provided at the time of applying for the bond.
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1.7 Sovereign Gold Bond Scheme Taxation
There are three aspects of taxation. Let us see one by one.
 Interest Income-The semi-annual interest income will be taxable income for you. Hence, for
someone in the 10%, 20%, or 30% tax bracket, the post-tax return comes to 2.25%, 2% and 1.75%
respectively. This income you have to show under the head of “Income from Other Sources” and
have to pay the tax accordingly (exactly like your Bank FDs).
 Redemption of Bond-As I said above, after the 5th year onward you are eligible to redeem it on 6th,
7th and 8th year (last year). Let us assume at the time of investment, the bond price is Rs 2,500 and
at the time of redemption, the bond price is Rs.3,000. Then you will end up with a profit of Rs.500.
Such capital gain arising due to redemption by an individual is exempted from tax.
 Selling in the secondary market of the Stock Exchange-There is one more taxation that may arise.
Let us assume you buy today the Sovereign Gold Bond Scheme 2021 Series VII and sell it on the
stock exchange after a year or so. In such a situation, any profit or loss from such a transaction will
be considered a capital gain.
Hence, if these bonds are sold in the secondary market before maturity, then there are two possibilities.
 Before 3 years-If you sell the bonds within three years and if there is any capital gain, a such capital
gain will be taxed as per your tax slab.
 After 3 years-If you sell the bonds after 3 years but before maturity, then such capital gain will be
There is no concept of TDS. Hence, it is the responsibility of investors to pay the tax as per the rules
mentioned above.
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1.8 Whom to approach for service-related issues?
The issuing banks/SHCIL offices/Post Offices/agents through which these securities have been purchased
will provide other customer services such as change of address, early redemption, nomination, grievance
redressal, transfer applications, etc.
Along with this, a dedicated e-mail has been created by the Reserve Bank of India to receive queries from
members of the public on Sovereign Gold Bonds.
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1.9 Sovereign Gold Bond Returns – How much you can get?
Now let us come back to the purpose of this post. To understand the volatility, price movement, and
expected returns of gold, I have considered the last 44 years’ gold price movement. The starting date is
02/01/1979 and the end date is 03/03/2023. This means we have 11,524 daily data points.
I have considered the 8 years’ rolling returns to understand the volatility of gold. Mainly because this post
is meant to understand the concept that if someone invested in a sovereign gold bond and redeemed it after
8 years of holding, then what may be the probable returns?
Based on this, if we calculate the 8 years of rolling returns, then we have around 9,440 of 8 years of rolling
returns data points.
Rolling returns in simple terms explain is – What if someone invested in gold and sold after 8 years during
those 44 years period? Rolling returns will actually give you a clear picture of the volatility of an asset.
Sovereign Gold Bond Returns - 8 Yrs Rolling Returns
You noticed that there is a huge deviation in returns. The maximum return is around 23% and the minimum
return is -1%. If we calculate the average returns of all those 9,440 data points of 8 years of rolling returns,
then it is 9.6%. You noticed how wide this 9.6% is from both the minimum and maximum returns during
these 44 years.
Let us move on to identify the drawdown of these returns. The drawdown is nothing but a fall in the returns
from its previous peak. This is an also indication of the risk involved in returns.
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Gold Drawdown from 1979 to 2023
You noticed that at a certain point, the drawdown is almost 100% falling from its earlier peak.
This indicates that by investing in sovereign gold bonds, you can’t expect decent returns at least better than
equity. Above that, this journey is filled with a lot of volatility. Hence, once you invest in a sovereign gold
bond, then it’s nothing but sheer luck to get better or fantastic returns which is filled with lot of volatility.
 In that case, one should completely stay away from sovereign gold bonds? The answer is YES and
NO. Yes, if you are uncomfortable with volatility and NO if you know why you are investing
 Invest in a sovereign gold bond if your need is physical gold buying after 8 years or so.
 Never invest in sovereign gold bonds just because there is another 2.5% yearly return. It is a kind of
peanut and how many of us actually reinvest this in gold is unknown to us.
 Sovereign gold bond is not risk-free. It is prone to underlying gold price movement. First,
understand this concept.
However, if your idea is to ad sovereign gold bonds as part of your investment portfolio, then better to stay
away. Mainly because when you invest in any asset, it should be liquid enough to sell and rebalance as and
when you need. However, as SGB trades are low in nature, they may not serve such a purpose. Instead
using the Gold ETF or Gold Funds (which invest in ETF) are far better options.
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1.10 Who Should Invest in Sovereign Gold Bonds?
You may consider diversifying your portfolio with at least 5%-10% in gold. As a low-risk investment, it is
perfect for investors with a low-risk appetite. The cost to purchase or sell SGBs is quite low compared to
physical gold. The expense of buying or selling the SGB is also nominal compared to the physical gold.
Those who do not want to go through the hassles of storing physical gold can also go for SGBs. This is
because it is easy to store this in Demat form, and nobody can steal it as they are in electronic form.
I. Eligibility Criteria
Any Indian resident – individuals, Trusts, HUFs, charitable institutions, and universities – can invest in SGB.
You may also invest on behalf of a minor.
II. Issuance of Bonds
Only RBI can issue SGBs on behalf of the Central Government, and they are traded on the Stock Exchange.
It is issued in multiples of one gram of gold. Investors will receive a Holding Certificate for it. You can also
convert it to Demat form.
III. KYC Documentation
You must follow the same Know-your-customer (KYC) norms as when you buy physical gold. You must
complete KYC by submitting copies of identity proof such as a PAN Card and address proof such as a
passport, driving license or Voter’s ID card for verification.
IV. Capital Gains
The interest on Sovereign Gold Bonds is taxable as per the provisions of the IT Act, 1961. In the case of SGB
redemption, the capital gains tax applicable to an individual is exempted. Also, long-term capital gains
generated are offered indexation benefits to an investor or when transferring the bond from one person to
another.
V. Eligibility for SLR
If banks have acquired bonds after going through the process of invoking lien, hypothecation or pledging,
then they accounted for SLR. The capital a commercial bank has to maintain in gold, cash, and approved
securities before offering credit to customers is called Statutory Liquidity Ratio (SLR).
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VI. Redemption Price
The redemption price must be in rupees, based on an average closing price of gold of 999 purity in the
previous three working days.
VII. Sales Channel
The government sells bonds through banks, Stock Holding Corporation of India Limited (SHCIL), and
selected post offices, as may be informed. The trading of SGBs also occurs via recognised stock exchanges
(National Stock Exchange of India or Bombay Stock Exchange) directly or through intermediaries.
VIII. Commission
The receiving offices shall levy 1% of the overall subscription amount as commission for the bond
distribution. From this commission, they will share at least half with intermediaries (agents or brokers).
IX. Sovereign Gold Bond Maturity Period
The maturity period of the sovereign gold bond is eight years. However, you can choose to exit the bond
from the fifth year (only on interest payout dates).
X. Sovereign Gold Bond Interest Rate/Return
The current interest rate for SGB is 2.50% per annum on your initial investment. It is paid twice a year (semi-
annually) for 8 years, i.e. till maturity. Interest will be credited directly to your account, which you shared
while investing. Returns are usually linked to the current market price of gold.
XI. Sovereign Gold Bond Maximum Limit
The value of the bonds is assessed in multiples of gram(s) of gold, wherein the basic unit is 1 gram. The
minimum initial investment is 1 gram of gold, and the upper limit is 4 Kg of gold per investor (individual
and HUF). For entities such as trusts and universities, 20 Kg of gold investment are permissible.
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1.11 How to Buy a Sovereign Gold Bond Online?
A person can apply for a Sovereign Gold Bond through their banks, Stock Holding Corporation of India
Limited (SHCIL), designated post offices and recognised stock exchanges, such as the Bombay Stock
Exchange and National Stock Exchange of India Limited, either directly or through agents.
SGBs can also be bought online through the commercial banks’ websites authorised to sell them. The process
to purchase SGBs through a bank’s online website is as follows:
a) Login to the bank’s internet banking account.

b) Click on the ‘e-service’ option and choose the ‘Sovereign Gold Bond’ option.
c) Read the terms and conditions and click the ‘Proceed’ option.
d) Fill out the registration form and click the ‘Submit’ button.
e) In the purchase form, enter the nominee details and subscription quantity.
f) After verifying all the details, click the ‘Submit’ option.
 How to Check Sovereign Gold Bond Status?
When you have purchased a Sovereign Gold Bond online with a Demat account, it will reflect in the portfolio
after the SGB issuance. In case of offline purchase, a person can collect the SGB certificate of holding from
the issuing bank, post offices, SHCIL offices, designated stock exchanges or agents. The RBI will mail the
digital copy of the holding certificate to the email address entered in the application form.
 Sovereign Gold Bond Certificate Download
The customers will be issued the holding certificate on the SGB issuance date. If a person has opted to receive
the physical form of certificate, it will be mailed to the registered email ID; otherwise, it will reflect in the
Demat account on the SGB issuance date. Customers can also collect the certificate of holding from the bank
branch.
 Sovereign Gold Bond Tax Exemption Under Section 80C
There are no tax deduction benefits for the lump sum deposit of SGBs under Section 80C of the Income Tax
Act. The interest given on SGB deposits is also not tax-free. The interest amount must be declared under
‘Income from Other Sources’ during tax returns. The income tax will be as per the individual’s income tax
slab.
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1.12 Benefits
 Absolute Safety
Sovereign Gold Bonds have none of the risks associated with physical gold except the market risks. There
are no hefty designing or wasting charges here. Moreover, SGBs earn interest, unlike physical gold, which
is an idle investment.
 Extra Income
You can earn a guaranteed annual interest at the rate of 2.50% (on the issue price); this is the most recent
fixed rate.
 Indexation Benefit
Long-term capital gains arise when investors transfer bonds qualify for indexation benefits. There is also a
sovereign guarantee on the principal and the interest earned.
 Tradability
You can trade gold sovereign bonds on stock exchanges within a specific date (at the issuer's discretion). For
instance, after completing five years of investment, you can trade them on the National Stock Exchange or
Bombay Stock Exchange, among others.
 Collateral
Some banks accept SGB as collateral/security against loans pledged in Demat form. Hence, they will treat it
as a gold loan after setting the loan-to-value (LTV) ratio to the value of gold. The India Bullion and Jewellers
Association Limited determines this.
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1.13 Frequently Asked Questions
I. Is it safe to invest in sovereign gold bonds?
An SGB is issued as per the Government Security Act, 2006, by the RBI on behalf of the central government.
Since it is backed by the government, it is one of the safest forms of investment as the chances of defaults on
repayment are zero.
II. Which bank is best to invest in sovereign gold bonds?
The gold bonds are sold through the branches or offices of nationalised banks, designated post offices,
scheduled foreign banks and scheduled private banks. You can choose any bank to invest in SGBs. It is
recommended to apply for an SGB where you have a bank account.
III. Are sovereign gold bonds tax-free?
The annual interest paid on SGBs of 2.5% is taxable at a marginal slab rate. However, when you withdraw
the lump sum amount upon maturity, no capital gains apply to them.
IV. Is the interest on sovereign gold bonds taxable?
Yes. Interest on the SGBs will be taxable as per the provisions of the Income-tax Act, 1961.
V. How to buy a sovereign gold bond in Zerodha?
You can place an SGB purchase order by logging into Zerodha’s Gold Bond page. You can also log in to the
Coin by Zerodha dashboard and click on ETFs and SGBs to invest in the Sovereign Gold Bond scheme. You
need to click on the ‘Sovereign Gold Bond investment’ option, fill in the required details and click the ‘Place
order’ button to invest in SGB.
VI. How to redeem sovereign gold bonds?
You can redeem the SGBs up on maturity, i.e. after completion of the 8th year or partially after the 5th year.
After the maturity period of eight years, both interest and redemption proceeds will be credited to the bank
account provided at the time of buying the bond.
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VII. How to sell sovereign gold bonds?
You can sell SGBs in secondary markets through stock brokers or transfer them in the name of third persons
by using Delivery Instruction Slip (DIS) slips. Currently, only a few stockbrokers are selling SGBs in the
secondary market, such as Zerodha and Upstox. If your stock broker is not allowed to sell gold bonds in the
secondary market, you have the following options to sell SGBs:
VIII. You have to sell your gold bonds by using DIS slip to a known person
Approach your stock broker and ask him to place an order to sell the gold bonds in the secondary market.
Open a new Demat account with stock brokers who sell and buy SGBs in the secondary market and transfer
the existing holding by using DIS slip
IX. Is sovereign gold bond a good investment?
Yes, it offers a lucrative, efficient and economical mode of holding gold compared to physical gold. They
are productive assets earning interest and have the additional benefits of a sovereign guarantee.
X. Can NRIs invest in sovereign gold bonds?
No, NRIs (Non-Resident Indians) are not eligible to purchase SGBs. However, if a resident becomes NRI
after purchasing an SGB, then he/she can continue to hold the SGB until maturity.
XI. What happens when I invest for 8 years in a sovereign gold bond?
After 8 years, the SGBs mature, and the interest and redemption proceeds will be credited to the bank account.
You will be informed about its maturity status one month before the maturity date. If there is any change in
details, such as email IDs, account numbers, etc., you must inform the bank, post office or SHCIL where you
bought the SGB regarding the change.
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1.14 Pros and Cons of investing in SGB
Let us start with the upsides of investing in gold bonds. Here are some upsides of SGB investing.
 The investment process is simple and it can be down offline or online through your banking or your
trading account. Also, the KYC is minimal and only a basic PAN based KYC is required.
 The interest and the principal in units of gold is guaranteed by the government, doing away with any
default risk on this investment.
 By holding the bonds for the full tenure of 8 years, the capital gains is entirely tax free, and that
substantially improves your post-tax yield.
 There is substantial leeway to invest in gold bonds. Investors can invest a minimum of 1 gram and a
maximum of 4 KGs per person. If there are multiple members in your family, up to 4 KGs can be
invested in each person’s name.
 The SGB price appreciates with the price of gold, so it is like owning gold without the hassles of
physical holding. It is much cheaper to hold as SGBs than physical gold.
 SGBs mirror the price of gold like gold ETFs do, but they have the added advantage of paying 2.5%
annual interest on the principal amount.
Let us now look at some of the downside risks of SGBs.
 SGBs carry gold price risk. In the past we have seen that gold prices have been in a long term falling
trend. For instance, between 1981 and 1999, gold fell all the way from $980/oz to $240/oz. SGBs
would not be profitable in these conditions.
 SGBs have to be held for 8 years to be free of capital gains tax. Any holding below that makes the
capital gain taxable. Also, the interest earned is fully taxable at peak rates.
 While SGBs are normally listed on the stock exchanges at the end of 6 months of issue, the secondary
market trading is very thin. Either, you do not get liquidity or the prices are too skewed.
 Unlike gold ETFs, which are available at real time gold prices with total liquidity, SGBs are only
available in tranches and exit is only possible when the government opens the repurchase window
after 5 years.
 Currently, SGBs only accept investments in cash and redeem in cash. The scheme may be more useful
if it also has a gold monetization angle to it.
25
1.15 Price History
 FY 2022-23
The series prices for the financial year 2022-23 are given below.
Series Month Price per Gram
Series 1 June 2022 Rs. 5,091
Series 2 August 2022 Rs. 5,197
Series 3 December 2022 Rs. 5,409
Series 4 March 2023 Rs. 5,611
 FY 2021-22
Series 1 May 2021 Rs. 4,777
Series 4 July 2021 Rs. 4,807
Series 6 September 2021 Rs. 4,732
Series 7 October 2021 Rs. 4,765
Series 8 November 2021 Rs. 4,791
Series 9 January 2022 Rs. 4,786
26
 FY 2020-21
Series 1 April 2020 Rs. 4,639
Series 11 February 2021 Rs. 4,912
27
 FY 2019-20
 FY 2018-19

28
 FY 2017-18
29
 FY 2016-17
 FY 2015-16
30
1.16 Is Gold a Hedge against Inflation?
Last Updated on August 2022 : Anyone interested in money management would have, at some point in time,
heard the saying that gold is a hedge against inflation. Does the data support this adage? Let us find out.
For an asset to be considered an inflation hedge, an investor must have a reasonable chance of earning a
return higher than inflation over the long-term or short-term. We have shown earlier that equity provides
such a reasonable chance despite unknown future returns – Why should I invest in equity mutual funds when
there is no guarantee of returns?
How does Gold fare in this regard? Before we begin, we would like to point out that in situations of extreme
inflation, when the currency becomes worthless, gold can be used as a universal currency and, therefore, an
efficient inflation hedge. However, the typically 10% or 15% exposure to gold funds or ETFs will not last
long during such a time! In this article, we only discuss the efficacy of gold as an inflation hedge during
normal circumstances.
15-year rolling returns of Gold price per troy ounce in INR compared with Nifty 500 TRI vs Sensex Price vs
I-BEX gilt index
For much of the 1990s and 2000s, 15-year gold returns (before tax) were well below 10%. During this period,
fixed deposits and small savings scheme returns were much higher with zero volatility, reflecting the
presence of high inflation. The Sensex price return (about 1-2% lower than the total index return) was much
higher. Only in the last decade, gold 15-year returns have done well, but again equities have done better.
Long-term gilt returns are below that of gold and equity but comparable to PPF rates in the period.
The biggest problem with gold is its long-term risk vs reward imbalance. The 15-year rolling standard
deviation of Gold price per troy ounce in INR vs Sensex Price vs I-BEX gilt index is shown below.
 15 year rolling standard deviation of Gold price per troy ounce in INR vs Sensex Price vs I-BEX gilt
index
 15 year rolling standard deviation of Gold price per troy ounce in INR vs Sensex Price vs I-BEX gilt
index
 The 15-year rolling standard deviation of Gold price per troy ounce in INR vs Sensex Price vs I-BEX
gilt indexNotice that gold has volatility well above gilts and is comparable to equity but typically
does not provide a commensurate reward. Thus gold is an unsuitable inflation hedge over the long
term or, at best, is an inefficient one.
31
Gold price per troy ounce in INR vs Consumer Price Inflation Rate
Gold price per troy ounce in INR vs consumer price inflation rateIt is hard to decipher much from the image
so let us consider the correlation coefficient between inflation rate and gold return between the same dates.
The overall correlation is -0.08. However, a further inspection is necessary. The 16-year rolling returns data
for Gold price per troy ounce in INR and USD is shown below. This is taken from: Are Sovereign Gold
Bonds safe?
 16-year rolling returns data for Gold price per troy ounce in INR and USD
 16-year rolling returns data for Gold price per troy ounce in INR and USD
 Notice that gold INR price movement only recently looks in line with gold USD price movement.
Since the opening of our economy in the early 1990s, our currency has gone through a long period of
devaluation and only in the last two decades attained stability. Read more: Gold Price Movement:
USD vs INR
Thus if we consider the correlation between inflation rate and gold INR return from 1980 to 2000, it is -0.017.
However, from 2000 to 2020, the correlation has jumped to 10%.
Thus recently, gold INR has reacted to inflation changes much better than it did in the past (when our currency
was still unstable). However, the correlation is still quite small.
Finally, the Gold price per troy ounce in INR vs RBI Repo Rate is shown below. Data source: RBI Repo Rate
History
 Gold price per troy ounce in INR vs RBI Repo Rate

 Gold price per troy ounce in INR vs RBI Repo Rate
 The correlation coefficient between the change in the repo rate and gold price change is about 0.19.
Just as we cannot expect the gold price to fall when the repo rate fall (or vice-versa), we also should
not expect gold to move up in value when the repo rate increases.
In summary, long term gold returns have only recently edged past fixed income returns. The associated reward
is incommensurate with the risk, especially when compared to returns from govt bonds.
32
CHAPTER 2 : REVIEW OF LITERATURE
33
2.1. Sovereign Gold Bonds Are a Good Investment in This Pandemic Covid-19.
This can be explained with help of an article - Why It Makes Sense to Invest in Sovereign Gold Bonds as
Covid-19 Plays Havoc
Gold has indeed proven itself as an effective hedge against any downside risk. It has seen a sharp rise in the
price rally since the first case of Novel Coronavirus was reported in November 2019. The current situation
considers allocating some portion of our investment portfolio to gold and its equivalents .In the pandemic
year buying gold in a physical form from preferred jeweller or gold merchant may not be possible amidst the
COVID-19. But one can consider Gold Exchange Traded Funds, Sovereign Gold Bonds, and/or Digital
Gold, which are smart and unconventional ways of investing in gold. Due to the pandemic, SGBs are
considered to be a good substitute for physical gold as it has numerous advantages like no purity & storage
concerns, higher returns, tax efficiency, etc.
 (Sudindra & Naidu, 2019) - Is Sovereign Gold Bond Better Than Other Gold Investment? The main
objective of the study is to find out how Sovereign Gold Bond is superior to other forms of Gold
Investment. The methodology used was secondary data. It concluded that SGBs are superior to
other forms of Gold Investment as SGB are better in terms of purchase price and benefit of no TDS
and can be used as security/collateral for availing loan.
 (Shenoy & Ashwitha, 2019) - Investors Perception and Satisfaction Level on Sovereign Gold Bond
Scheme a Study at Belthangady Taluk (D.K): The objectives of this research paper are to study the
factors considered by investors on investments in SGBs and the perception and satisfaction level of
investors.The study was limited to 30 respondents only. The findings were 67% of respondents
were satisfied with their investments and 66% prefer to invest in this scheme in paper form and the
rest 34% prefer DEMAT form. It suggested that since the scheme is authorized it is safe and secure
it is suitable for investor.
 (Ninan, 2018) - Sovereign Gold Bond Scheme - An Alternative to Physical Gold Investment in
Kerala: This research highlights the objective about physical, paper and SGB and awareness. The
research methodology used was explorative in nature and based on primary data. The findings were
75.3% lack awareness about SGB, majority that is 90.7% have investments in physical gold only.
The conclusion explained SGBS is a preferred option for investment.
34
 (Satijani & Gidwani, 2018) - Gold Saving Scheme: An unusual way of investing in Gold thrust on
Sovereign Gold Bond Scheme (SGBs): The main objective is to study the SGB scheme and to
compare the performance of Physical gold, Gold ETF and to provide an alternative to buying
physical gold. The research methodology adopted for this study is secondary research. It suggested
and recommended that Government should formulate and implement policy for gold. The
conclusion showed that the study revealed that gold loan were primarily being used for
smoothening household consumption and for repaying debts.
 (Rathore, 2017) - Investor’s Attitude towards Physical Gold and Sovereign Gold Bonds: The
objective is to study the influence of different factors while investing in physical gold and SGB and
to study the investor’s preference. Research methodology used is quantitative method and data is
collected through primary sources. The findings are that investment in SGB, the investor needs not
to pay any transaction cost which makes the scheme more attractive. It suggested and recommended
to have awareness workshops for SGBs. Conclusion explained safety, purity and liquidity are the
major factors to which investors give importance.
 (Rishsab, 2018) - A Financial Innovation in India: The objective of this paper to study the
background of Sovereign Gold Bond scheme, to understand the difference between SGB and
physical gold and explained revenue generated from SGB are higher. The research methodology
used is based upon the secondary data analysis. It has also highlighted the advantages to SGB that it
is considered the safest investment. Some major points of conclusions are the awareness of
Sovereign Gold Bond scheme among the investors is moderate. Many investors still believe
physical gold as a safer option.
35
CHAPTER 3 : RESEARCH METHODOLOGY
36
3.1 Objectives of The Study
In order to understand the Investors’ perception and awareness towards SGBs, the following objectives were
framed:
 The purpose of the study is to know the awareness level towards SGB
 To study the investor’s perception through preference between physical gold and SGBs
 To study the reasons for non-investment in SGBs by investors
 To study the factors, reasons considered by investors on preference in SGBs schemes.
3.2 Problem Statement
Diversion of investment from the physical form of gold to the non-physical form is the need of the hour. As
a result, GOI and RBI have come up with various alternatives like gold ETF, SGB scheme, etc. The GOI
introduced SGBS as a measure for curbing the gold imports, the investment under the scheme proves to be
low all over India, especially in Mumbai due to its low awareness among the investors and their sentimental
attachment towards holding gold in physical form. Even though it has many benefits, SGB has low
investment compared to other financial instruments
3.3 Scope And Significance Of Study
This study attempts to understand investors perception though their preference towards Physical Gold and
SGBs. Also, investors awareness towards SGBs in Mumbai. The scope of the study includes background,
introduction of SGBs, features and merits. It also covers the statistical test conducted to analyze and interpret
the results and arrive at a conclusion.
3.4 Edges of Sovereign Gold Bonds
It is considered the safest form of investment as zero risk of handling physical gold. One can earn 2.50%
assured interest per annum on the issue price. Also, it an assurance of purity: gold bond prices are linked to
price of gold of 999 purity (24 carat) published by IBJA. It has an easy exit option that is the tenor of the
bond is for 8 years with an option to redeem from 5th year onwards on the date on which interest is payable.
And it is easily traded on Exchange and there is an ease of borrowing loan, can be used as collateral for
loans. A key benefit is the issue price of the Gold Bonds will be ₹ 50 per gram less than the nominal value
to those investors applying online and the payment against the application is made through digital mode.
37
3.5 Hypothesis Of The Study
Hypothesis 1: The age, income of the investor and awareness related to SGB are independent.
H0: There is no significant difference between the awareness of SGBs among investors based on their age
and income.
H1: There is a significant difference between the awareness of SGBs amonginvestors based on their age and
income.
Hypothesis 2: The age, income of the investor and the Preference of Investment in Physical Gold and
SGB are independent.
H0: There is no close association between the age, income of investor and preference of investment.
H1: There is a close association between the age, income of investor and preference of investment.
Hypothesis 3: The annual income of the investor and the reason for non- investment in non-
conventional forms of Gold are independent. (Here, it is referred to as SGBs)
H0: There is no significant difference in the income and perception of investors for non-investment in SGB.
H1: There is a significant difference in the income and perception of investors for non-investment in SGB.
Hypothesis 4: The annual income and perception on preference of investors towards SGB is
independent.
H0: There is no influence of annual income on perception of investors towards preference of SGB.
H1: There is influence of income on perception of investors towards preference of SGB.
38
3.6 FEATURES OF SGB
The main features of SGB as per RBI are -
 Eligibility to invest in SGB – Person’s resident in India as defined under Foreign Exchange
Management Act, 1999 are eligible to invest in SGB. Eligible investors include individuals, HUFs,
trusts, universities and charitable institutions.
 Minimum and Maximum Limit for investment –Minimum investment in the Bond shall be one gram
of gold, where one unit of the bond is equal to one gram of gold with a maximum limit of subscription
of 4 kg for individuals.
 Interest Rate – The Bonds bear interest at the rate of 2.50% (fixed rate) per annum on the amount of
initial investment.
 Redemption and Tenure for SGB – On maturity, the Gold Bonds shall be redeemed in Indian Rupees
and the redemption price shall be based on simple average of closing price of gold of 999 purity of
previous 3 business days from the date of repayment, published by the India Bullion and Jewelers
Association Limited (IBJA). Though the tenor of the bond is 8 years, it offers an exit option, early
encashment/redemption of the bond is allowed after fifth year from the date of issue on coupon
payment dates. On maturity—after eight years—investors can redeem the bond at the average price of
gold in the three preceding days. The interest payments, however, will be made on the face value.
 DEMAT Account – The Bonds can be held in DEMAT account and a specific request for the same
must be made in the application from itself.
39
CHAPTER 4 : DATA ANALYSIS AND INTERPRETATION
40
1. AGE OF THE RESPONDENT
Age No of Respondent Percentage
20-30 52 52%
30-40 32 32%
40-50 14 14%
50-60 2 2%
INTERPRETATION
The above chart shows that 52% people range from 20-30 age group,32% people range from 30-40 age
group,14% people range from 40-50 age group and 2% are from 50-60 age group.
41
2. GENDER OF THE RESPONDENT
Gender No of Respondents Percentage
Female 55 55%
Male 45 45%
INTERPRETATION
The above chart shows that 55% female respondents are there and 45 % male respondents are there.
42
3. EDUCATION OF THE RESPONDENT
Particulars No of Respondent Percentage
SSC 5 5%
HSC 21 21%
Graduate 48 48%
Post Graduate 21 21%
INTERPRETATION
The above chart shows that 5% are SSC passed,21% are HSC passed,48% are Graduate,21%
are Post Graduate
43
4. OCCUPATION OF THE RESPONDENT
Occupation No of Respondents Percentage
Jobs 47 47%
Professionals 19 19%
Business 21 21%
Employee 13 13%
INTERPRETATION
The above chart shows the occupation of the respondents
44
5. ANNUAL INCOME OF THE RESPONDENT
Particulars No of Respondents Percentage
3,50,000-4,50,000 30 30%
4,50,000-5,50,000 10 10%
5,50,000-6,50,000 21 21%
6,50,000 above 39 39%
INTERPRETATION
The above chart shows the Annual Income of the respondents
45
6. WHAT IS THE FULL FORM OF SGB
INTERPRETATION
As per the above chart shows that most of the respondents know the full form of SGBs.
46
7. HAVE THE RESPONDENT INVESTED IN SOVEREIGN GOLD BONDS?
Yes 64 64%
No 35 35%
Not Sure 1 1%
INTERPRETATION
The above chart shows that 64 % invest in Sovereign Gold Bonds and 35 % do not invest.
47
8. DO THE RESPONDENT KNOW ABOUT SOVEREIGN GOLD BONDS?
Yes 42 42%
No 40 40%
Maybe 18 18%
INTERPRETATION
The above chart shows that 42 % people know about SGBs, 40 % people do not know about SGBs and 18
% are not sure.
48
9. DO THE RESPONDENT KNOW ABOUT THE INTEREST RATE OF
SOVEREIGN GOLD BONDS?
Fixed Rate 35 35%
Linked to Market Interest Rate 20 20%
Linked to the price of Gold 42 42%
No interest rate applicable 3 3%
INTERPRETATION
The above chart shows the Interest Rate of SGBs as per their knowledge.
49
10.DO THE RESPONDENT KNOW THE MEANING OF SOVEREIGN GOLD
BONDS?
A type of physical gold that is 24 24%
minted by the government.
A government-backed 18 18%
investment product that tracks
the price of gold.
A certificate of ownership 57 57%
issued by the government for
a specific amount of gold.
Others 1 1%
INTERPRETATION
The above chart shows the Meaning of SGBs as per their knowledge.
50
11.DO THE RESPONDENT KNOW THE BEST WAY TO INVEST IN
SOVEREIGN GOLD BONDS?
Physical Gold 19 19%
Gold Exchange 14 14%
Gold Mutual Funds 15 15%
Sovereign Gold Bonds 52 52%
INTERPRETATION
The above chart shows that 52 % people invest in Physical Gold, 19 % invest in Gold Exchange, 15 % invest
in Gold mutual funds and 14 % invest in sgbs.
51
12. DO THE RESPONDENT KNOW THE MINIMUM INVESTMENT AMOUNT
FOR SOVEREIGN GOLD BONDS?
5 grams 58 58%
20 grams 20 20%
10 grams 20 20%
15 grams 2 2%
INTERPRETATION
The above chart shows the minimum investment amount for SGBs according to the Respondents knowledge.
52
13.DO THE RESPONDENT KNOW ABOUT THE TENURE OF SOVEREIGN
GOLD BONDS?
5 years 58 58%
7 years 23 23%
10 years 13 13%
12 years 6 6%
INTERPRETATION
The above chart shows the tenure of SGBs as per the respondents knowledge.
53
14. DO THE RESPONDENT KNOW HOW THE PRICE IS DETERMINED IN
SGB?
The market demand and 34 34%
supply of gold
The price of gold in 43 43%
international market
The price of gold in the 11 11%
domestic market
The government's valuation of 12 12%
gold
INTERPRETATION
The above chart shows that how the prices are determined in SGBs as per the respondents knowledge.
54
15. DO THE RESPONDENT KNOW THAT THE SGBS CAN BE TRADED ON
THE STOCK EXCHANGE?
Yes 46 46%
No 35 35%
Maybe 19 19%
INTERPRETATION
The above chart shows that 46 % people know that SGBs can be traded on the stock exchange, 35 % don’t
know and the rest of the 19 % are not sure.
55
16. DO THE RESPONDENT RECOMMEND INVESTING IN SGB TO
OTHERS?
Yes 52 52%
No 39 39%
Not Sure 9 9%
INTERPRETATION
The above chart shows that 52 % people would recommend investing in SGBs, 9 % wouldn’t recommend
and the rest of the 39 % are not sure.
56
CHAPTER 5 : RECOMMENDATION
57
Following recommendations and suggestions are made after analyzing the responses given by investors
(respondents) and understanding about SGB. They are as follows:
 It is observed that still majority of investors prefer to invest in Physical Gold, so it is recommended
that awareness regarding SGB should be made.
 Awareness can be increased through conducting workshops, seminars regarding SGB’s and
explaining them to invest in SGB, educating people about the benefits for the same. This can be
done by Banks and social media networks advising the investors to invest in SGBs.
 The mode of investment in SGB is easier and fast compared to Physical Gold, hence SGB should be
preferred.
 It is analyzed that high income group have positive relation towards Preference in SGB, so it is
recommended to target and educate them.
58
CHAPTER 6 : CONCLUSION
59
The awareness of Sovereign Gold Bond scheme among the investors is still very moderate. Many investors
still believes physical gold as a safer option irrespective of interest government may provide. There is still
lack of income tax clarity on few provisions of SGB. There is a need to stabilize the gold market. The
government must take adequate measures to reduce the demand for gold by making necessary changes in
the gold policy. The government must ensure proper standards and regulation so as to improve the
governance issue in the market. There is a market risk associated with SGB. If prices of gold falls then it
will leads to capital loss on investment. Moreover, there SGB are illiquid in the first 5 years. Taxability of
interest earning and non-compounding of interest are another major concern which distracts the investors to
invest in this scheme.
Appropriate measure needs to be taken to improve the marketability and tradability of SGB. Government
has also taken some initiative so as to popularize this scheme. In order to meet the investment needs of
different category of investors, flexibility has been given to introduce various variant of SGB with different
interest and risk protection payoff. Despite of these concerns, SGB have a vibrant market in the near future.
Such type of scheme is necessary to improve the overall health of economy.
Gold bonds are a new product and investors are still learning about them. An issue about gold bonds is that
they are not on-tap. Investors have to wait for the government to sell a new tranche. You cannot go and buy
them whenever you want. Also, some investors prefer to buy smaller denominations than a gram which can
be done via gold ETFs, but not gold bonds.'
Having launched the scheme in November 2015, and not been able to successfully mobilize enough gold
since then, it is imperative for the government to identify gaps in policy formulation and implementation on
gold, and ensure that such identified gaps are addressed, to encourage confidence and participation from
households without which the policy will not be able to achieve its intended objective of reducing
dependence on imports of gold.
60
CHAPTER 7 : BIBLIOGRAPHY
61
Websites
https://www.nseindia.com
https://rbi.org.in
http://www.arthapedia.in/index.php
http://pib.nic.in/newsite/PrintRelease.aspxhttps://www.quora.com/
https://bemoneysaver.blogspot.com
http://ssrn.com/abstract
https://www.icicibank.com
https://www.grow.com
https://www.icicibank.com
https://www.bankbazar.com
62
CHAPTER 8 : ANNEXURE
63
1. Name
2. Age
20-30
30-40
40-50
50-60
3. Gender
Female
Male
Others
4. Education
SSC
HSC
Graduate
Post-Graduate
Diploma
5. Occupation
Professionals
Job
Business
Employee
6. Annual Income
3,50,000-4,50,000
4,50,000-5,50,000
5,50,000-6,50,000
6,50,000 above
7. What is the full form of SGB?
___________________
64
8. Have you invested in Sovereign Gold Bonds?*
Yes
No
9. Do you know about Sovereign Gold Bonds?
Yes
No
Maybe
10. What is the interest rate for Sovereign Gold Bonds?
Fixed Rate
Linked to Market Interest Rate
Linked to the price of Gold
No interest rate applicable
11. What is a Sovereign Gold Bond?
A type of physical gold that is minted by the government.

A government-backed investment product that tracks the price of gold.
A certificate of ownership issued by the government for a specific amount of gold.
Others
12. What is the best way to invest in gold?
Physical Gold
Gold Exchange
Gold Mutual Funds
Sovereign Gold Bonds
13. What is the minimum investment amount for sovereign gold bonds?
5 grams
20 grams
10 grams
15 grams
14. What is the tenure of Sovereign Gold Bonds?
5 years
7 years
65
10 years
12 years
15. How is the price determined in sovereign gold bonds?
The market demand and supply of gold

The price of gold in international market
The price of gold in the domestic market
The government's valuation of gold
16. Can sovereign gold bonds be traded on the stock exchange?
Yes
No
Maybe
17. Would you recommend investing in Sovereign Gold Bonds to others?
Yes
No
Not sure
66

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A PROJECT REPORT ON

“A STUDY ON INVESTOR PRESPECTIVE TOWARDS INVESTMENT IN

THE UNIVERSITY OF MUMBAI FOR PARTIAL COMPLETION OF THE BACHELOR

UNDER THE FACULTY OF MANAGEMENT

AMBIKA SUNIL SINGH

ROLL NO: MF20068

UNDER THE GUIDANCE OF

ACADEMIC YEAR 2022-2023

THE S.I.A. COLLEGE OF HIGHER EDUCATION

PLOT NO-88, MIDC RESIDENTIAL ZONE, GYMKHANA ROAD, NEAR BALAJI

COURSE CO-ORDINATOR PRINCIPAL

PROJECT GUIDE EXTERNAL EXAMINE

Ambika Sunil Singh

(SIGNATURE OF THE GUIDE)

Assistant Prof. Mukul Kulkarni

Sr. No Title Page No

2. Review of Literature 33-35

3. Research Methodology 36-39

4. Data Analysis and Interpretation 40-56

 Tenure of the Bond

 Minimum and Maximum investment

 Loan against Bonds

 Liquidity of the Bond

1.5 Who can invest?

There are three aspects of taxation. Let us see one by one.

Sovereign Gold Bond Returns - 8 Yrs Rolling Returns

II. Issuance of Bonds

III. KYC Documentation

IV. Capital Gains

V. Eligibility for SLR

VII. Sales Channel

IX. Sovereign Gold Bond Maturity Period

X. Sovereign Gold Bond Interest Rate/Return

XI. Sovereign Gold Bond Maximum Limit

a) Login to the bank’s internet banking account.

 How to Check Sovereign Gold Bond Status?

 Sovereign Gold Bond Certificate Download

 Sovereign Gold Bond Tax Exemption Under Section 80C

I. Is it safe to invest in sovereign gold bonds?

II. Which bank is best to invest in sovereign gold bonds?

III. Are sovereign gold bonds tax-free?

IV. Is the interest on sovereign gold bonds taxable?

V. How to buy a sovereign gold bond in Zerodha?

VI. How to redeem sovereign gold bonds?

IX. Is sovereign gold bond a good investment?

X. Can NRIs invest in sovereign gold bonds?

Let us now look at some of the downside risks of SGBs.

Series Month Price per Gram

Series 1 June 2022 Rs. 5,091

Series 2 August 2022 Rs. 5,197

Series 3 December 2022 Rs. 5,409

Series 4 March 2023 Rs. 5,611

Series Month Price per Gram

Series 1 May 2021 Rs. 4,777

Series 2 May 2021 Rs. 4,842

Series 3 June 2021 Rs. 4,889

Series 4 July 2021 Rs. 4,807

Series 5 August 2021 Rs. 4,790