Gold Allocation: Sovereign Gold Bonds (SGB), Digital Gold, and Physical Jewellery

Comparing the 4 Ways to Own Gold in India

| Feature | Physical Jewellery | Gold ETFs / Mutual Funds | Sovereign Gold Bonds (SGB) |

|---|---|---|---|

| Making Charges / Drag | 15% – 25% loss | Zero making charges (0.4% TER) | Zero making charges |

| Annual Cash Yield | 0% | 0% | +2.5% per annum |

| Storage / Theft Risk | High (Locker fees) | Zero (Stored in Demat) | Zero (RBI sovereign guarantee) |

| Capital Gains Tax | 12.5% LTCG post 2 yrs | Slab / 12.5% LTCG | 100% TAX-FREE at maturity! |

Why SGBs Are the Gold Standard

Issued directly by the Reserve Bank of India, SGBs pay you 2.5% simple annual interest credited straight to your bank account twice a year, and the entire capital appreciation at the 8-year maturity is completely tax-free under Section 47 of the Income Tax Act.