Gold bonds annual return at 12.9%

Investors who bought at ₹2,684/gram to get ₹6,132/gram plus 2.75% interest on redemption

- DIPAK MONDAL

AS the first tranche of sovereign gold bonds (SGBs) are up for redemption, investors who held on the bonds they bought in 2015 stand to make a healthy 12.9% average annual return over the last eight years.

SGBs, first issued in 2015, are coming up for redemption on November 30 this year. The RBI last week announced the price for the final redemption due on November 30 will be ₹6,132 per unit of SGB. Issued at a price of 2,684 per gram, the first tranche of the SGB also offered an annual interest of 2.75%.

Therefore, investors not only gained from increase in price of gold in the last eight years, they also earned an interest on their principal amount.