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What is Sovereign Gold Bond Disadvantages?

Sovereign gold bonds are issued by RBI in India with Rs 50 per gram online discount. The tenure for SGB is 8 years from the issuing date. Early redemption is possible after 5 years. Investors get 2.5% interest on the initial investment paid half-yearly.Logically we don’t see any major disadvantages with Sovereign gold bond. You are getting an assured return of 2.5% interest on your investment. Few of the negative point are listed below:

  • SGB invested through an offline channel will not get Rs 50 discount per gram.
  • SGB invested without demat format then funds are blocked for 5 years minimum.
  • The volume of SGB is very low when you have SGB in demat format, so you will not get the best price when you wish to exit in peak gold price.
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  1. How to buy a sovereign gold bond from SBI Bank?
  2. How to check SGB status in HDFC netbanking?
  3. How to buy SGB from HDFC bank for Minor account holder?
  4. How to invest in Sovereign gold bonds online with HDFC?
  5. How to buy a sovereign gold bond from HDFC Bank?
  6. How to buy sovereign gold bond with SBI?
  7. Where to buy Sovereign Gold Bonds?
  8. What is the tax liability in Sovereign gold bond investment?
  9. What is sovereign gold bond tenure?
  10. Sovereign Gold Bond Scheme Benefits
  11. What is Sovereign Gold Bond Disadvantages?
  12. How to invest in Sovereign gold bonds online with ICICI?
  13. How to invest in Sovereign Gold Bonds with Zerodha?
  14. Are Sovereign Gold Bonds listed on NSE?
  15. What are the benefits to invest in Sovereign Gold Bond with SBI?
  16. What Sovereign Gold Bond Calculator calculates?
  17. How is Sovereign gold bond versus Gold ETF?
  18. Is sovereign gold bond good or bad?
  19. How is Sovereign Gold Bond schemes compared to Fixed Deposits?
  20. When can I buy a sovereign gold bond online?
  21. When was the Sovereign gold bond scheme launched for the first time?
  22. Is sovereign gold bond backed by physical gold?
  23. Is sovereign gold bond tradable?
  24. Is interest on sovereign gold bond taxable?
  25. Is Demat Account required for the sovereign gold bond?
  26. How to get a sovereign gold bond certificate?
  27. How to check sovereign gold bond status?
  28. How to redeem sovereign gold bond?
  29. How to sell sovereign gold bond?
  30. How to buy sovereign gold bond online?
  31. How to buy sovereign gold bond?
  32. Can a minor invest in a sovereign gold bond?
  33. Can I convert the sovereign gold bonds to physical gold?
  34. Can I buy sovereign gold bond without demat account?
  35. Can NRI invest in a sovereign gold bond scheme?

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