Sovereign Gold Bond redemption: Investors net 317% returns on SGB 2017-18 Series-VI

New Delhi: There is good news for investors investing in gold bonds. The Reserve Bank of India (RBI) has announced the final redemption price of Sovereign Gold Bond (SGB) 2017-18 Series-VI. This bond was issued on 6th November 2017 and will now mature on 6 November 2025 after completing the maturity period of 8 years. The final redemption value of this series has been fixed at Rs 12,066 per gram. That means investors who had invested in this bond are now getting great returns on their gold.

According to the RBI notification, this series was released at the rate of Rs 2945 per gram at that time. At the same time, investors who bought it online were given a discount of Rs 50 per gram and their issue price was Rs 2,895 per gram. Now that the final redemption price is Rs 12,066, it means that online buyers are getting a total return of around 317 percent.

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That is, investors will have a direct profit of Rs 9,171 per gram (12066 — 2895 = 9,171). If you look at the percentage, this is a fantastic increase of 316.7 percent.

SGB not only benefits from the increase in the price of gold, but it also offers an interest rate of 2.5 percent per annum. This interest is credited to the bank accounts of investors every six months. The final interest installment will be paid on maturity along with the principal amount. This means that investors who have been holding bonds from the beginning till now will not only get more than three times the return, but also get an additional benefit of annual interest in eight years.

SGB holders should ensure that they check the release date and redemption date of their series carefully. Investors can complete the final redemption process through their bank or Demat account. If the bond is in demat form, the redemption amount will be credited directly to the bank account. At the same time, investors with physical form will have to submit the necessary documents in time.