SGBs: Things to do for early redemption

Since gold prices may move higher, investors who can remain invested in Sovereign Gold Bonds will be benefitted

- DIPAK MONDAL @New Delhi

SEVERAL tranches of Sovereign Gold Bonds (SGBs) are coming up for premature redemption in April and May 2025. These include bonds issued in October and November 2017, as well as some tranches from as late as 2021. Investors can apply for early redemption starting from March 17, 2025.

While SGBs have an 8-year maturity period, early redemption is allowed after completing the fifth year.

The key question for investors is whether to opt for premature redemption now or hold the bonds until maturity—especially for those nearing the end of their tenure.

The 2017-18 series of SGBs will complete their full 8-year term later this year. Investors in this series may consider holding on a little longer, given the current bullish momentum in gold prices.