Last month, Prime Minster Narendra Modi launched two gold schemes- Gold Monetisation Scheme (GMS) and Sovereign Gold Bond (SGB), and India's first-ever gold coin. Given below are the nitty-gritties of the schemes.
SGB aims at reducing demand for physical gold by channelising investment needs (bars, coins) into gold bonds.
It's the first-ever national gold coin minted in India. It is not a gold scheme like the previous two.
"Other than appreciation in gold price and 2.75 per cent interest provided by gold bonds, one also stands to gain an additional 1%, which is the expense ratio charged in ETFs."
Suresh Sadagopan, Founder of Ladder7 Financial Advisories.
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