Interesting Story

Ninad RamdasiCategories: DSIJ_Magazine_Web, DSIJMagazine_App, Letters to Editor, MF - Letter to Editor, Mutual Fundjoin us on whatsappfollow us on googleprefered on google

Interesting Story

I came across your story on sovereign gold bonds which I found quite interesting.

I came across your story on sovereign gold bonds which I found quite interesting. However, I would like to know whether it is the right time to take exposure to gold via SGB? - Pratik Ranka

Editor Responds : Investing in gold helps in diversifying your overall portfolio and also help you contain the risk when the equity and debt markets are out of favour. Moreover, investing in gold via SGB is a good option as it is directly linked to the gold spot prices and you don’t have to pay extra like in case of buying gold from a jeweller. Furthermore, you also earn a simple interest of 2.5 per cent on the face value apart from appreciation. In terms of taxation as well it is quite favourable. That said, it should not form more than 10 per cent of your portfolio.