Gold bond turns Rs 1L investment into Rs 2.92L
The Reserve Bank of India (RBI) has announced that investors in the SGB 2020-21 Series VII can redeem their bonds early on October 19, 2026. This is the fifth anniversary of the bond's issue, and redemption is permitted five years after the issue date. The premature redemption price is set at Rs 14,614 per unit, based on the simple average of the gold price for the last three business days before the redemption date.
This follows similar dates for the SGB 2019-20 Series VI (October 30, 2026) and SGB 2020-21 Series I (October 28, 2026).
The SGB 2020-21 Series VII was initially issued at Rs 5,001 per gram online. Over this five-year period, the bond has delivered an absolute return of approximately 192%, amounting to a gain of Rs 9,613 per gram. In percentage terms, this translates to a 192.21% return. Thus, a Rs 1 lakh investment in this SGB would have grown to around Rs 2.92 lakh, not counting the interest earned during the holding period.
A Sovereign Gold Bond (SGB) is a government-issued security denominated in grams of gold, serving as an alternative to physical gold investment. They are issued by the RBI on behalf of the government. The bonds accrue interest at a fixed rate of 2.50% per annum on the initial investment amount.
Written by urgent.news from The Economic Times's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
