As the yellow metal surges to a 4 month high here is a digital option to invest in the safe haven. The second tranche of the Sovereign Gold Bond scheme 2021-2022 is now open, Here is all you need to know:
- Issue price of ₹4,842 per gm; a ₹50 per gm discount for those applying online
- Subscription period May 24 to May 28; issuance date June 1, 2021
- Minimum subscription limit at 1 gm and maximum at 4 kg
- Gold bonds offer an annual interest rate of 2.50%
- Total tenure of 8 years; premature redemption allowed after the fifth year
- Experts recommend allocating 5 to 15% of an investment portfolio in gold
Pros: 2.5% annual return along with value appreciation
Cons: Low liquidity