How to apply for SGB (Gold bond)?
@dineshydv presently we do not have an interface wherein you could bid from Dhan for SGBs. However, you can use any other banking platform and use Dhan BOID (16 digit number) so that you can get those units in Dhan Demat Account and hence can see in your portfolio as well. You can even pledge them for margin.
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Curious to know from all the members, do you invest in gold? If yes, what are your preferred instruments?
For trading, GoldM. Otherwise, physical gold is enough.
Personally I love to invest into SGBs. I’ve been investing in each tranche since FY 2017-18, (Marwaris have strong obsession for Gold 
).
My goal was to have a steady cashflow over the next 8 years and that too TAX Free!
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Really sad to see that Dhan has no interface to invest in SGB directly even though SGB has been around for so many years. Any idea or plan when this functionality will be added?
@dineshydv Its already on our road map and we would be shipping that very soon!
That is a very good plan. one can invest as per his income as ticket size is just 1 gram. Also, it helps in adding a diversification to investment portfolio which everybody should do. The best part is it’s tax free.
If we invest in every tranche, we should get conservatively atleast 8% XIRR (including interest & redemption)… effectively 10% as redemption is tax free. (only interest is taxable).
I liked your idea of investing in every trance to have a steady cashflow after 8 years for atleast 8 years. Great plan. i am gonna copy that.
GoldETF because of liquidity. No to SGB because if I want to commit 8 years of holding, I have more faith in equity market to boom than Gold.
yes but a little diversification is no harm. A little steady & safe investment as well. we can also withdraw almost anytime without any loss bcz gold prices increase gradually.
Also dont forget to inclue the tax benefit on redemption which can be huge advantage for people falling in 31.2% income tax bracket like me. And can be even more for people falling in 41.6% bracket.
Atleast 10-20% should be invested in risk free investments & Sgb turns out to be just better than FDs in many aspects.
Gold is not a risk-free investment.
I categorize assets into two categories:
-
Risk-free, which will help me fulfill short-term goals (<5 years) irrespective of market conditions - For this, I only consider fixed-income assets such as Debt funds, bonds, FDs. None of these are tax-efficient though after 2023 budget. Cannot consider SGB in this category because of 8 years of bond.
-
Risky but huge growth - Volatile assets with huge potential of growth in >5 years. I consider equity here and diversify it into Indian and US market equity.
If market/economy is going down even after 5 years, that means it’s not just you but the whole country is doomed and you can’t do anything
.
Please correct me if anyone sees flaw in my approach.
has this functionality been released? If not then any idea when it will be?
@krishag Exactly. Until Government stops SGBs, can continue with the 8 year cycle. Adding to it, they can even be pledged to get margin for trading. They are classified as CASH Equivalent and get a margin benefit of 90%. So deploy options strategies to gain even the RFR and boom - you can do better than
@daya.reddy @dineshydv SGBs will be packed in “Bonds on Dhan” and would be live soon.
@mark3tn00b Indeed ETFs are also a good option if liquidity is a concern. Different asset classes are there to cater needs of every individual and IMO as long as long term goal of “wealth creation” is achieved, everything sets right.
Same gp for me…i am gujarati…kindly make it live as soon as possible…and is it possible to transfer sgb to dhan from another demat account?