Gold Bond Investors to Get 333% Returns on December 2017 Issue
In a significant development, the Reserve Bank of India (RBI) has announced the final redemption price of ₹12,801 for Sovereign Gold Bonds (SGBs) under the 2017-18 Series-XI, which was issued on December 11, 2017. This news has brought cheer to investors who had invested in these bonds, as they will now receive a return of around 333% on their initial investment. To put this into perspective, investors who had bought the bonds at ₹2,954 per unit will now receive ₹12,801 per unit, resulting in a substantial profit.
For those who may not be familiar with SGBs, they are a type of investment instrument that allows individuals to invest in gold without actually holding physical gold. The bonds are denominated in grams of gold, and investors can buy them in multiples of one gram. The price of the bonds is linked to the market price of gold, and the returns are also linked to the performance of gold prices.
The SGBs were introduced by the Government of India in 2015, with the objective of reducing the demand for physical gold and increasing the investment in financial assets. The bonds have a tenure of eight years, with an option to exit after the fifth year. The interest on the bonds is taxable, but the capital gains tax is exempt if the bonds are held for at least three years.
The announcement of the final redemption price of ₹12,801 for the 2017-18 Series-XI SGBs is significant, as it highlights the potential for high returns on investment in these bonds. The price of gold has increased substantially since the issue date of these bonds, resulting in a significant increase in the redemption price. This has resulted in a return of around 333% for investors who had bought the bonds at ₹2,954 per unit.
In addition to the final redemption price for the 2017-18 Series-XI SGBs, the RBI has also set the same price for premature redemption of the 2019-20 Series I SGBs, which were issued on June 11, 2019. This means that investors who had invested in these bonds will also receive the same redemption price of ₹12,801 per unit, if they choose to redeem their bonds prematurely.
The high returns on investment in SGBs have made them an attractive option for investors who are looking to diversify their portfolio and invest in a safe and secure asset. The fact that the returns are linked to the performance of gold prices makes them an attractive option for investors who are looking to hedge against inflation and market volatility.
However, it’s worth noting that the returns on SGBs are not without risks. The price of gold can be volatile, and there is a risk that the price may fall, resulting in a lower redemption price. Additionally, the interest on the bonds is taxable, which may reduce the net returns for investors.
In conclusion, the announcement of the final redemption price of ₹12,801 for the 2017-18 Series-XI SGBs is a significant development for investors who had invested in these bonds. The high returns on investment of around 333% make SGBs an attractive option for investors who are looking to diversify their portfolio and invest in a safe and secure asset. However, it’s essential to do thorough research and consider the risks before investing in SGBs or any other investment instrument.
As the Indian economy continues to grow and evolve, it’s likely that we will see more innovative investment products like SGBs being introduced. The key to success will be to stay informed, do thorough research, and make informed investment decisions.
In other news, the Association of Mutual Funds in India (AMFI) has reported that equity mutual fund inflows have risen by 21% month-on-month to ₹29,911 crore in November 2025. This is a significant increase, and it highlights the growing interest in mutual funds as a investment option.
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