Sovereign Gold Bonds scheme best way to invest in gold on this Dhanteras

It's a sentiment to buy at least a small piece of gold on Dhanteras, which is marked as a lucky day for many people. In India, the gold is considered as a status, security, and investment. In case your planning to buy gold on this festival season then here is something that may interest you.

The gold rates in all markets across the country are almost at Rs 39,000 for ten grams. The gold has delivered over 20 per cent returns on investment since the beginning of this year, which is the highest among all asset classes so far.

Though, the real estate market is providing meritable results and uncertainty continues in the stock market. When equity and mutual funds are concerned, there are not matching to this asset class. So if at all your looking to invest in gold, then here is the best option that the Indian government itself has come up.

The Sovereign Gold Bonds scheme, which is introduced by the government is an excellent option. The main motto of this scheme is to reduce the demand for gold, and in case anyone wants to buy gold can acquire up to 500 gms under the gold bound scheme.

The Sovereign Gold Bonds scheme has multiple advantages. The biggest of them is that it offers an interest of 2.5 per cent per annum up to 500 gms of gold investment.

Besides that, if you buy gold in physical form you will end up spending 3 per cent of the price on GST. When you buy under the Sovereign Gold Bonds scheme, you don't pay any GST.

Apart from that, the interest in this scheme, which is 2.5 per cent, is also not deductible under TDS. Finally, it's an eight years scheme, where you are allowed to withdraw after the fifth year under the plan.

So the Sovereign Gold Bonds is one big advantage that the investors have in their hands if they want to invest in gold on interest without paying any GST and enjoy all benefits of having gold in the possession.

The reason why gold is doing well in the market is that the country's economy has taken a turn for the worst. The GDP growth rate in the last quarter was the worst that the experts have seen in multiple years, and the investors are not very confident about any other asset classes.

The gold is often considered as a safe haven, whether there is any economy downfall in the country or the personal financial condition. If you don't want to buy gold in the metal form, then you can always invest in Sovereign Gold Bonds, which is practically the same with the added advantage of high interest of 2.5 per cent, no GST, and no TDS deduction.