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Invest in Gold, the Smarter Way

Invest in Sovereign Gold Bonds and participate in the potential of gold price appreciation while earning fixed annual interest — all without the hassle of storing physical gold.

Invest in SGBs
Sovereign Gold Bonds
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What are Sovereign Gold Bonds?

Sovereign Gold Bonds (SGBs) are Government of India securities issued by the Reserve Bank of India (RBI) and denominated in grams of gold. They offer investors an alternative to holding physical gold while providing the benefit of gold price-linked returns and a fixed annual interest payment.

Issued by the RBI Denominated in grams of gold Gold price-linked returns
Why SGBs

Why Invest in Sovereign Gold Bonds?

A government-backed way to own gold — with interest income, tax efficiency and none of the storage worries of physical gold.

Government Backed

Issued by the RBI on behalf of the Government of India.

Earn Fixed Interest

Enjoy 2.5% annual interest along with potential gold price appreciation.

No Storage Hassles

Invest in gold without locker charges, theft risks, or purity concerns.

Tax Benefits

Capital gains on maturity are tax-exempt for individual investors, as per prevailing regulations.

Portfolio Diversification

Add gold exposure to help diversify your investment portfolio.

How it works

How Sovereign Gold Bonds Work?

From subscription to maturity — here's how your investment in gold grows over time.

01

Subscribe

Invest in Sovereign Gold Bonds during the subscription period.

02

Linked to Gold Price

The investment value is linked to the prevailing gold price.

03

Earn Interest

Earn fixed semi-annual interest during the holding period.

04

Gold Appreciation

Benefit from any appreciation in gold prices over time.

05

Redeem

Redeem at maturity or exit through eligible redemption options.

The Chola Securities advantage

Why Invest Through Chola Securities?

Seamless Digital Access

Apply and manage your investments through a convenient digital platform.

Diversified Investment Solutions

Access a range of investment products including equities, mutual funds, bonds, and gold investments.

Trusted Investment Partner

Invest with the support of a well-established financial services platform.

Frequently asked questions about Sovereign Gold Bonds

Sovereign Gold Bonds (SGBs) are Government of India securities issued by the Reserve Bank of India and denominated in grams of gold. They offer an alternative to holding physical gold, with gold price-linked returns and a fixed annual interest payment. You can invest in SGBs through Chola Securities by opening a demat account and applying during a subscription period.
Sovereign Gold Bonds pay a fixed interest rate of 2.5% per annum. The interest is paid semi-annually, every six months, during the holding period. This is in addition to any appreciation in the gold price, since the value of the bond is linked to the prevailing price of gold.
Sovereign Gold Bonds are issued by the Reserve Bank of India on behalf of the Government of India. Because they are government securities, they are referred to as sovereign-backed, which is reflected in their safety classification as a sovereign security.
Sovereign Gold Bonds have a maturity of 8 years. An early exit option is available from the fifth year onward, which can be exercised on the interest payment dates. This gives investors a defined long-term holding with some flexibility to exit before maturity.
Returns on Sovereign Gold Bonds come from two sources. First, the fixed annual interest of 2.5%, paid semi-annually. Second, any change in the value of the bond, which is linked to the prevailing gold price. Because returns depend on the gold price, the final value at redemption can rise or fall with gold.
As stated on this page, capital gains on maturity are tax-exempt for individual investors, as per prevailing regulations. Tax treatment can change and may depend on individual circumstances, so investors should consult a qualified tax advisor for guidance specific to their situation.
The purchase limit for Sovereign Gold Bonds is 4 kg, or 4,000 units, during each financial year for individual investors. The bonds are denominated in grams of gold, so the amount you invest depends on the prevailing gold price at the time of subscription.

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Track gold prices, apply for live Sovereign Gold Bond tranches and manage your portfolio, reports and service requests — all in one seamless platform.

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