Pros And Cons Of Investing In Sovereign Gold Bond

Pros - Digital Storage Of Gold Bonds Makes Them Easy To Maintain

A Fixed Annual Interest Rate Of 2.5 Per Cent Ensures Steady Return On Your Investment

Capital Gains Made From SGBs Are Exempted From Tax

SGBs Can Be Used As Collateral For Loans

Cons - Lock In Period Of 5 Years Could Impact Your Cash Flow

SGBs Take Longer To Sell In The Open Market

Interest Earned Annually From SGBs Is Liable For Taxation

On Maturity, Market Gold Prices Could Be Lower, Making The Investment Unpredictable