What Rate of Return do I get from Sovereign Gold Bond ?

 Sovereign Gold Bond Scheme was launched by Govt in November 2015, under Gold Monetisation Scheme. Under the scheme, the issues are made open for subscription in tranches by RBI in consultation with GOI. RBI Notifies the terms and conditions for the scheme from time to time. The subscription for SGB will be open as per following calendar. The rate of SGB will be declared by RBI before every new tranche by issuing a Press Release.

Sovereign Gold Bond Scheme (SGB): Tranches during 2021-22

Sl. No.	Tranche	Date of Subscription	Date of Issuance of Bonds
1.	2021-22 Series VII	October 25–29, 2021	November 02, 2021
2.	2021-22 Series VIIl	November 29 –December 03, 2021	December 07, 2021
3.	2021-22 Series IX	January 10-14 , 2022	January 18, 2022
4.	2021-22 Series X	February 28 - March 04, 2022	March 08, 2022

Illustration for calculation of Rate of Return - SGB

Consider an investor who wants to put  Rs 1 lakh in the Sovereign Gold Bond Scheme of RBI  and redeeming after 10 years.

Notes:

1. Allotment is based on grams of gold, not rupees invested

2. Return from investment has two components: the price difference and the fixed 2.5% pa interest on amount invested

3. Maturity is 8 years and so the investor who wants to hold it for 10 years may have to look at opportunities for remaining 2 years of his investment horizon

4. The year of investment is taken as 2013 for illustrative purpose only. the scheme came into existence in 2015 only.

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