When redeeming their investment, investors receive the market price. SGBs also provide a 2.5% yearly guaranteed return rate on the initial investment.
Due to the fact that it is backed by the government, there is no default risk. On behalf of the Central government, it is issued by the Reserve Bank of India.
SGBs are available to investors in Demat form. This implies that you do not always need to have a physical paper with you.
SGBs are tax-exempt. Physical gold, however, is an exception to this. GST is paid when you purchase actual gold.
SGBs are exchange-tradable securities. Additionally, it can be given to any other qualified investor.
SGBs have an eight-year maturity span. After five years, there is an additional exit option. When the investment matures (after 5 years), the capital gains tax is waived.