SovereignGoldBonds(SGBs)-Shouldyouinvestinthem?COMPARISONofSGBs,GoldMFs,PhysicalGold👇🏽SGBs:Ease:Simple,paperless,andonline.Safety:Government-backed,safecustodyLiquidity:So-so,canbetradedonthestockexchange,orredeemedafter5years.Returns:Gain/lossbasedongoldprice+2.5%annualinterestrateLock-inperiod:Canberedeemedafter5years,maturityis8years.Taxation:Interestistaxedatyourincometaxslab.Ifheldtomaturity,finalpayoutistax-free.Marketrisk:Linkedtogoldprice.GoldMFsEase:Simple,paperless,andonline.Safety:Professionallymanaged,safecustodyLiquidity:EasilyredeemablewhenneededReturns:Nointerest,gain/lossdependsonpriceofgoldLock-inperiod:NoneTaxation:STCGaddedtoincome,LTCG20.8%(indexationbenefit)Marketrisk:LinkedtothepriceofgoldPhysicalGoldEase:Requiresphysicalpurchaseand(ideally)lockerSafety:RiskoftheftorlossLiquidity:Relativelylow,requiresefforttosellReturns:Nointerest,gain/lossdependsonmarketpriceofgold.Lock-inperiod:NoneTaxation:STCGaddedtoincome,LTCG20.8%(indexationbenefit)Marketrisk:LinkedtothepriceofgoldWhichshouldyouinvestin?PhysicalGold:ConsiderthisonlyifyouthinkyoumaywanttomakejewelryoutofthegoldyoubuyGoldMFs:Considerthisifyou'rebuyingpurelyasaninvestmentANDyouthinkyoumayneedtoredeemyourmoneyatshortnoticeSGBs:Considerthisifyou'rebuyingpurelyasaninvestmentANDyoudon'tneedthemoneyfor8years.Fromareturnsperspective,SGBsarethebestoption,butdon'tignoretheotherpoints!#investing#investingindia#mutualfunds#mutualfundsindia#gold#SGB#personalfinance#personalfinanceindia#Money#MoneyMatters#HipiMoney#HipiFinance#HipiFunds#FinancialTips#HipiFinance#FinanceonHipi