Investment Options

Sovereign Gold Bonds (SGBs) Vs Mutual Funds (MFs) | Interest rate, tax benefits, returns?

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When it comes to investing in gold, two popular options are Sovereign Gold Bonds (SGBs) and Mutual Funds (MFs). Both investment options have their advantages and disadvantages, and choosing between them depends on individual investment goals, risk appetite, and financial situation.

Sovereign Gold Bonds are a relatively new investment option introduced by the Government of India in 2015. SGBs are government-issued bonds that are denominated in grams of gold, where investors can buy and hold these bonds for a specified period.

At maturity, investors receive the value of the bond in gold or cash, based on the prevailing market price of gold.

On the other hand, Mutual Funds are investment vehicles that pool money from various investors to invest in different financial assets, including gold. MFs invest in various gold-related instruments such as gold mining stocks, ETFs, and physical gold.

Mutual Funds offer diversification, liquidity, and professional management to investors.

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