Sovereign Gold Bonds

Invested a bit of an amount. Safe money and fixed interest. Problem is not liquid.

Its good to diversify your portfolio as long as liquidity is not an issue. Also no capital gain tax.

You can also buy them from the stock market like shares, they are traded on exchange, so in case of emergency you can sell them off too (but with 30% tax on profits, no tax in case you redeem at 8 years from RBI), plus 2.5% interest makes it little better than other gold investment options. Zerodha has the option to buy fresh issued bonds, many banks also have options in their internet banking, there is even option to buy it filling a physical form I think

The sole reason SGBs exist is because our govt wanted to relief the budget a little by reducing gold imports

It's the best diversification instrument for commodities in India It's a Tax saving long term gold bond with 2.5% annual payouts and a 8 year old lockin for the final sale Am just waiting for the gold prices to make sense now

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It is suited only for people with very large investable corpus. If you are a retail or family person, buy jewellery and gift your parents/wife. Happiness is worth more than just few percentage higher diversification.