from a personal angle I'm aware continuing to invest in periods of higher volatility is a Smart way to build wealth., these volatilities look promising
Certainly, Investors should also exercise caution with their exposure and exercise caution when considering new investments, particularly during periods of inflation. It is advisable to seek guidance from a professional or trusted advisor in order to navigate this recession and achieve potential high yields.
indeed, most people downplay the roles of financial experts until burnt by there mistakes. Productivity is optimized and keeping up to date strategies and analysis makes it more lucrative. I've been able to navigate the volatilities and scaled up 880k from 220k with professional guidance.
Wow impressive numbers, No doubt being financially free and not having to worry much about health care and other expenses cannot be overemphasized, making smart plans and setting up diversified investment portfolios is quite essential. Who do you work with?
Chris Ryan Stewart is the CFP responsible for my portfolio success, the man has a private client base you can confirm him yourself on the internet, regulation an all.
Very well timing of this video, I was looking for the pros and cons of investing through demat and netbanking. Thank you for very well summarizing everything related to SGB.
Just Buy directly from RBI and sell to RBI after lock in. So much trouble when buying from secondary market and also discount and volume available is not worth it
Hello, if you want to avoid hassles, this is indeed the way to go. However, those who want to earn slightly extra and understand the nuances of buying SGBs in the secondary market can go through the stock exchange route.
In the 3 tables comparing returns from primary issuances vs 1% disc vs 8% disc: 1. shouldn't the final price at maturity be the same? And this final should be calculated based on an assumed 6% cagr for 8 yrs on actual current price of 5948.5. This works out to 9481. 2. U have clubbed all int payments and added to final price and then done a cagr. Shouldn't an xirr be done? This gives the true picture as cagr is NOT taking into account time value of money. Difference between the two is quite reasonable. These changes will result in significantly different returns.
Hello, the SGB matures after 8 years from its issue date. It doesn't matter whether it was bought during the fresh issue or from the secondary market. On maturity, the bonds are redeemed for the prevailing gold prices.
nice video. did not burn fingers buying them. If it is not pegged with the commodity then where will the government get the money in case the price rises steeply over eight years?
Hello, multi-cap funds are a way to invest in equity. If you want diversification across assets, SGBs and other gold investment options can be considered.
if SGB is brought from secondary market and held to maturity : 1. is the maturity amount still exempt from any capital gains tax? 2. is the 2.5% interest credited in trading account? Please help me to understand. Thanks
Hello, if you hold the SGB until its maturity, the gains are tax-free. It doesn't matter whether you bought the SGB during the fresh issue or from the secondary market. The point is that you should hold it until maturity. Do note that only the maturity proceeds from SGBs are tax-free, not the 2.5% annual interest. The interest is taxed as per your income slab and tax regime. The interest will likely be credited to your bank account linked with the trading account.
Thanks a lot, had one more query If bought thru secondary market, post maturity do they have to be sold on exchange or they are automatically redeemed ?
No you can't Sovereign Gold Bonds (SGB) is Gov Securities and has a fixed maturity date. So on the date of maturity, it will auto redeem and funds will be transferred in your bank account and I don't see any point why would somebody want to hold even after maturity why not just invest again somewhere which provides better returns and better opportunity and 8 yrs a big big long-time.
Hi, I had a few queries, if I place a new issue order from Zerodha will it still be tax free during sale post 8years of tenure? Secondly, is there any benefit booking new issues through bank or platforms like Zerodha? Which is better? Thirdly, is the 50rs discount also applicable to platforms like Zerodha? If not, which platforms have this discount?
Yes sovereign golds are tax exempt if held till maturity . SGB are issued by RBI (it's a govt security) so you can buy it anywhere wherever it suits you it's the same no special treatment anywhere.Only if primary seller is RBI and you are not buying it in secondary market (stock market). It's subjected to at the price offered by seller in secondary market so zerodha will not give you any special treatment any stock broker is just the same just fees and charges are different.
