The Sovereign Gold Bond (SGB) 2017–18 Series VI, issued on November 6, 2017, has delivered an impressive return of over 220% upon premature redemption after 7.5 years. The Reserve Bank of India (RBI) has set the redemption price at ₹9,453 per gram for May 6, 2025, reflecting a significant appreciation from the initial issue price.
Issue Details: Launched on November 6, 2017, the SGB 2017–18 Series VI had an initial issue price of ₹2,781 per gram.
Redemption Price: The RBI has fixed the premature redemption price at ₹9,453 per gram for May 6, 2025, marking a substantial gain for investors.
Return on Investment: This translates to an absolute return of approximately 240% over 7.5 years, excluding the annual interest payments.
Interest Income: Investors also received an annual interest of 2.5%, paid semi-annually, enhancing the overall returns.
Tax Benefits: Capital gains from SGBs are exempt from tax if held until maturity, making them a tax-efficient investment option.
This performance underscores the potential of SGBs as a secure and profitable alternative to physical gold investments, offering both capital appreciation and periodic interest income.
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