Sovereign Gold Bond Scheme 2020-21 Series XII opens on March 1, 2021

Sovereign Gold Bond Scheme 2020-21 Series XII opens on March 1, 2021Sovereign Gold Bond Scheme 2020-21 Series XII opens on March 1, 2021


Sovereign Gold Bond Scheme Series XII (Series 12) of 2020-21 would open for subscription on March 1, 2021. Sovereign Gold Bonds (SGBS) 2020-21 Price is based on the average price of the preceding 3 days of the issue opening date which is fixed by Govt of India. SGBS offers Rs 50 per gram as discount to investors who invest online in demat form. In the article, we would provide Sovereign Gold Bond 2020-21 Series XII issue details.

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Sovereign Gold Bonds Series XII of 2021-21 Issue details, dates and Price

These gold bonds would open for subscription on March 1, 2021 and closes on March 5, 2021.

These bonds are issued by RBI on behalf of the Government of India, hence are considered as one of the safest investment options.

These gold bond units would be issued to investors on 9th March, 2021 after subscription is closed.

These bonds would carry 2.5% interest rate per annum, which is payable every half year.

The issue price is fixed at Rs 4,612 per gram. Investors who are investing through online/demat form would get a discount of Rs 50 per gram. If you observe, earlier Feb-21 gold bonds were issued at Rs 4,912 per gram (6% lower price now)

The sovereign gold bond scheme has a tenure of 8 years. However, one can exit from these bonds after 5 years on subscription dates.

These Sovereign Gold Bonds are issued in denominations of 1 gram of gold and in multiples of 1 gram.

Minimum investment is equivalent to 1 gram of gold.

How to apply for Sovereign Gold Bonds Mar 2021 issue?

The Bonds will be sold through Scheduled Commercial banks (except Small Finance Banks and Payment Banks), Stock Holding Corporation of India Limited (SHCIL), designated post offices, and recognized stock exchanges i.e. NSE/BSE.

I would recommend you to buy through demat form so that everything is online and you also get a Rs 50 discount per gram.

Who can invest in these Sovereign Gold Bonds?

We have provided our view earlier, but would re-iterate again

1) If you want to diversify your portfolio between equity, debt and gold, you can invest in SGB or gold mutual funds.

2) If you want to accumulate gold for future purpose, either to gift ornaments to your spouse or daughter, you can invest in these sovereign gold bonds.

3) Gold in the short term, might not be attractive. You would have seen gold prices fall in the last 6 months to 9 months. You may see down trend for few more months, but in medium to long term, gold prices might go up. If you are looking to invest in gold for short term investment, you may avoid.

Can I buy Sovereign Gold bonds in the secondary market?

Its indeed a best option. One can check our article earlier about some of the best sovereign gold bonds from the secondary market.

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Suresh KP

7 comments

  • Ajay Agrawal

    Hello Sir, Is it a monthly (like SIP) investment scheme or a one time investment.

  • Jalpesh

    Hi Sir,

    I am regular follower of your blogs.

    I have one query regarding tax on equity long term gain.

    Can we carryforward unused benefit of 1 lakh tax free long term gain from the equity ?

    Let’s say I did not redeem any units in equity MF for the 2 financial years.
    Now I redeem some units in the 3rd Fin year.

    Can I say my tax free benefit from the long term gain in equity MF will be total 3L ? (2 previous fin years + current fin year) ?

    Looking forward to your quick reply.

    Thanks.

  • Rajan Shah

    Hi,

    What seems good?

    Buying SGBAUG28V from secondary market or apply for Series XII (Series 12) of 2020-21 ?

    • Hello Rajan, The prices of Gold SGBs in secondary market would keep fluctuating. If the price of such bonds are available at lower rate, you can purchase them from secondary market itself

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