Investors in the Sovereign Gold Bond (SGB) 2016-17 Series IV are set for a massive tax-free return as the Reserve Bank of India (RBI) announces the final redemption price. Originally issued in February 2017 at ₹2,943 per gram, these bonds will now be redeemed at ₹8,624 per gram on March 17, 2025, delivering a 193% return.

Additionally, premature redemption for SGB 2019-20 Series IV, issued in September 2019, has been confirmed at ₹8,634 per gram. These gains are further amplified by gold prices hitting record highs of ₹88,310 per 10 grams.

SGBs offer unique benefits, including tax-free capital gains upon maturity, a 2.5% annual interest payout, and security backed by the Government of India. Unlike physical gold, they require no storage or insurance costs. Moreover, SGBs provide liquidity through stock exchange trading or early redemption after five years.

With gold surging over 14% this year, adding ₹11,000 per 10 grams, SGBs have proven to be a lucrative and safe investment option. Investors continue to benefit from market-linked returns while avoiding risks associated with physical gold holdings.

Source: Business Today