Modi Government when came into power back in 2014 introduced a couple of schemes :
- Gold schemes and
- Gold monetization scheme
Comparatively, the Gold monetization scheme was not well known to the Gold scheme for the interest rates.
Sovereign gold bonds belong to the debt fund category. It is an initiative by the government of India which enables investors to invest in gold instead of buying physical gold.SGB is highly cost-effective and it is sensible to hold gold in the form of bonds.
When you buy and sell physical gold jewelry,15-20% is lost in the making charges each time you change the form of gold. In regards to gold bars and gold coins, the cost associated with them is insurance cost, storage cost, and safety. On the other hand, SGB can be held in the form of a certificate or in the Demat account avoiding the associated physical gold costs.
The key point to consider which makes investing in a Sovereign gold bond a wise decision:
- SGB offers a more efficient and economical way to own gold compared to physical gold.
- They offer a guarantee backed by the government and are very productive in regard to earning interest.
- Sovereign gold is considered to be tax-efficient compared to physical gold that means the redemption of the gold bonds is tax-free and in case if they are sold on the secondary market investors will get capital gain at the existing rates.
- SGB pays an annual interest of 2.50% to the investors which is a good way to put gold into use and earn something semi-annually on a regular basis compensating for the inflation risk.
- SGB is free from default risk since they are backed by the government of the country.
- SGB can be considered a better asset class under the economic instability or depreciation in the currency value.
- It is very useful to the people who view gold as an investment avoiding the fear of theft and backing from the government of India.
- There is no GST levied on sovereign gold bonds unlike gold coins and bars
- Sovereign gold bonds can be used as collateral for loans that means it will work as an asset for an investor to avail a loan.
It is always advisable to take guidance from experts in regard to taking any crucial decisions. Bondskart has a team of experts who could help you in every step to ensure you make an informed decision while making your bond investment.
Through Bondskart you can conveniently explore and purchase bonds.
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In simple context an accrued means something that is increased over a period of time.An accrued interest is a type of interest earned on a particular investment but the investor has not collected it.In accounting terminology, accrued interest is the amount of interest that has been incurred as of a specific date on a financial obligation but has not yet been paid out.In reference to the bond investment, accrued interest usually means the amount of periodic interest that bond generate gets accumulated since the last time the interest payment was made.Another example of accrued interest is the interest on savings account balance that accrue on a daily basis but is credited to the beneficiary account at the end of every month.Accrued interest is mostly associated with bond investments and they are calculated basis the mentioned components namely:Face value of the bond, the coupon rate of the bond and the time horizon of the accrual period.Accrued interest = Face value of the bond *(Coupon rate / 365) * Accrual periodFor example:Suppose the face value of the bond is Rs.
1,00,000 along with the coupon rate @ 5% and accrual period of 63 days, then the accrued interest is1,00,000 * 5%/365 * 63 =Rs.
863.01Accrued interest is an important point to consider at the time of purchasing or selling a bond.
Bonds offer the owner compensation for the money they have lent in the form of periodic interest payments.These interest payments also referred to as coupon payments are paid semi-annually .However, bonds are not only the financial instruments where the interest payments are accrued.
On a normal loan as well the interest gets accrued wherein the principal amount remains the same .
Interest accrues and is due to the lender before a regular payment date.On the closure of the transaction, the amount of interest paid by the borrower is calculated by the below formula:Loan amount * (Interest rate / 365) * Accrual period.Therefore accrued interest is the interest that is added to the face value of the bond to compensate the bondholder in regards to the time value of money.
Appearing at the court can be very stressful at times for both you and your families.
The fear of getting arrested is not only disturbing but traumatizing as well.
But it is more troublesome if you have someone from your circle who has been accused of a criminal case.
In that case, you are the one who can stay beside the defendant and provide him assistance.You can always assist by taking help from a bail bondsman by issuing Hialeah bail bonds at the court.
Bail bonds can alleviate stress and anxiety and make the process smooth.
It helps your friend from going behind the bars.What to do for the Accused?Now that your accused friend has been released on Miami bail bonds, it is important to see that they appear at the court to meet the conditions.
