In recent times, investing in gold has become a popular option among investors.
Gold investments not only offer diversification to the portfolio but also act as a hedge against inflation.
One of the popular ways to invest in gold is through Sovereign Gold Bond (SGB).
SGBs are government securities denominated in grams of gold. They offer investors an alternative to holding physical gold.
In this blog post, we will discuss what sovereign gold bond is and how to buy it in Upstox.
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What is Sovereign Gold Bond?
Sovereign Gold Bond is a bond issued by the Reserve Bank of India (RBI) on behalf of the government of India.
SGBs are issued in multiples of 1 gram of gold and can be bought by resident individuals, HUFs, trusts, universities, and charitable institutions.
The bonds have a tenure of 8 years, with an exit option after the fifth year.
SGBs are traded on the stock exchanges, and their prices are linked to the prevailing market prices of gold.
How to Buy Sovereign Gold Bond in Upstox?
To buy Sovereign Gold Bond in Upstox, follow the steps below:
1. Open a Demat and trading account with Upstox if you do not have one already.
2. Log in to your Upstox account and go to the 'Gold' section from the menu.
3. Select 'Sovereign Gold Bonds' from the list of options.
4. Choose the series, quantity, and price at which you want to buy the bond.
5. Review the order details and confirm the purchase.
Once you confirm the purchase, the bond units will be credited to your Demat account.
You can hold the bond until maturity or sell it on the stock exchange before the maturity date.
Conclusion
Sovereign Gold Bonds provide an excellent opportunity for investors to invest in gold without the risks of holding physical gold. Upstox provides a convenient platform for buying SGBs online.
Investors can buy SGBs in a few simple steps and hold them till maturity or trade them on the stock exchange.
Investing in SGBs can provide diversification to the portfolio and act as a hedge against inflation.
