Sovereign Gold Bonds (SGBs) are a financial instrument introduced by the Government of India to allow individuals to invest in gold in a more secure and convenient manner. These bonds are issued by the Reserve Bank of India (RBI) on behalf of the government.

Indian residents, Hindu Undivided Families (HUFs), trusts, universities, and charitable institutions are eligible to invest in SGBs. Non-resident Indians (NRIs) are also eligible to invest, subject to certain conditions

SGBs have a fixed tenure of 8 years, with an exit option after the 5th year. Investors can choose to exit the bond after the lock-in period by selling it on stock exchanges.

SGBs offer a fixed interest rate, which is determined by the government and announced for each series of bonds. The interest is paid semi-annually and is taxable.

SGBs are considered a safe investment because they are backed by the Government of India. They carry the sovereign guarantee, reducing default risk.

SGBs are considered a safe investment because they are backed by the Government of India. They carry the sovereign guarantee, reducing default risk.