Mark Your Calendar: SGB's Maiden Tranche Matures on Nov 30

The Golden Step

The RBI issued the first tranche of SGB in November 2015, which is maturing after 8 years on November 30, 2023.

Issue Price

SGB was priced at Rs 2,684 per unit for the first tranche.

The Bonus Feature

The interest rate offered for this tranche was 2.75% per annum.

The Maturity Price

The redemption price is Rs. 6132 per unit, based on the simple average closing price of Gold from November 20 to November 24, 2023.

Calculation Simplified

The above image shows the scimplified calculation for SGB's returns.

The Learning

The price of gold has doubled since then. This is undoubtedly a bonanza of earnings for the investors.