SGB returns on Rs 1 lakh investment explained
On August 11, 2026, the Reserve Bank of India (RBI) announced the premature redemption price for two Sovereign Gold Bonds (SGB) series. The SGB 2019-20 Series IX, issued in 2020, will be redeemed at Rs 14,957 per unit and the SGB 2020-21 Series V, issued in July 2020, will be redeemed at the same price. The redemption prices are based on the simple average closing price of 999-purity gold over the previous three business days.
To calculate the returns from these bonds, the difference between the redemption price and the initial investment is considered. For a Rs 1 lakh investment, the SGB 2019-20 Series IX matures at approximately Rs 3.72 lakh, while the SGB 2020-21 Series V matures at about Rs 2.83 lakh. In percentage terms, the returns are 272.06% for the SGB 2019-20 Series IX and 183.05% for the SGB 2020-21 Series V, respectively.
This means that the initial investments have grown significantly in value, even without accounting for the fixed 2.50% annual interest paid semi-annually until maturity.
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