9:36 ah! What a golden revelation for me! Was wondering why I should go for gold etf when gold mutual funds have lower expense ratio. But this makes it clear! Thank you.
Dont forget the charges of a Stock Broking Co., while buying GOLD ETFs. You got to pay Brokerage/tran, GST, SEBI Cess, Nirmala Sitaraman Cess etc., etc.,
I personally invest 10% of my SIP amount into edelweiss gold and silver fund of fund. Gives me exposure to 5% of gold and silver each in the entire portfolio. Every quarter the fund rebalances the ETFs held to be 50:50, this also helps in capturing the change in gold-silver ratio. At the time of rebalancing, if gold is overvalued compared to silver, profits will be booked from the gold side and get invested in silver without having to realise capital gains and vice versa for silver. It has already given me 7.8% return over the last 2 months. If asset rebalancing is something one does, then fund like this will help.
Thank you Mr. Nath for another informative video! The depth, comprehensiveness and lucidity of your videos make them very helpful especially for the new learners. Keep up the good work!😊
We've never thought about expense ratio of etf as underlying asset in gold mutual fund. Very useful information. We prefer gold mutual fund option due to liquidity advantage at convenience and completed asset allocation before 31st March 2023 to ensure indexation benefits. In future it's better to use dynamic asset allocation mutual fund due to taxation advantages...
This video is pure gold. 😉 I've not invested much in gold but this year I plan to do so. Imo the returns of SGB look attractive but its moderate liquidity is a concern. Everyone likes it because of govt backing but that is the risk too. We never know when the govt will tinker with the 2.5% additional interest when it feels like just like it plays around with PPF interest rates. By the looks of it a Gold ETF is better with physical backing of gold and high liquidity.
Thanks 1. I agree, there will be some changes to the form & shape of SGB. It need not be in terms of interest only, the government can also change taxation and it will at some point of time because the no capital gain tax is unfair to gold ETFs/MFs which can go upto 30% tax 2. In my view, short term tactical gold plays are better served with gold ETFs and long term strategic allocations can be done via SGBs
Could you please make a video on how to build wealth , right from emergency fund to retirement planning, for varied incomes, like if I were to earn 50k per month, how should I go about my savings, investments and expenses. This will b really helpful. Thank you!
Thank you again for sharing detailed analysis. I did something similar couple of years ago and went with option of ICICIGOLD ETF. Watching it come up on your video reassures my decision. Thank you!
Thank you shankar I have subscribed your channel couple of days back ... and i have covered almost 75% of your videos. I am gonna share to my family surely you need better reach and subscriptions .Keep going 🎉
Namaskar Sir, randomly came to your channel yesterday and found a gem 😊. Sir one request if this channel is almost dedicated to Indian people, may I ask you to make videos in English and Hindi as well. Many people will get benefit. It's a humble suggestion.
Namaste Priti ji. Thank you very much for your appreciation. You raise a valid point as have many people and I've realised the decisions I have to make are no different than anyone, you & me included make on a daily basis at work, at one's house, in relationships etc. We evaluate the scenario, come up with solution and pick the one that is systemically viable. Please allow me to explain my thought process The English-v-Hindi decision was required given my own physical & mental abilities. My videos require a lot of research, scripting and editing which takes up all 7 days of my week to produce 2 videos. To avoid stress, I take a small 3 day break after every 6-7 videos. If I were to look at English and Hindi - then the quantity of videos will come down, maybe 1.5 videos a week or worse, the quality of research will come down. It is also possible that TH-cam might start penalizing me for being infrequent or posting duplicate content which means patrons like you might not discover me. Effectively, as a full-time content creator, there are three people I need to take care of in equal measure: 1. Me (priorities: adequate videos, revenue, mental & physical fatigue) 2. Viewers (priorities: quality video production, well-researched content) 3. TH-cam (priorities: number of videos, CTR, average view time) At this point, I feel I have balanced the priorities of all three stakeholders to the best of my abilities. Any modification will either require trade-offs or I'll have to introduce additional variables like hire people, change video format etc. I'm certainly looking at different aspects of it and over the comings months, you'll see much of that in action. Once again, thank you for your note.
Hi Shankarji, thanks for a crystal clear and a goldmine video on gold as an investment. Could you please suggest some Gold ETFs as a part of a 20 year long term portfolio? I’m yet to invest in gold. Just bought 1 tranche of SGB back in 2020 but later didn’t buy due to lack of liquidity (uncertainty of staying invested in 8 long years in case of an emergency). Any suggestions on good gold ETFs would be highly solicited. Thank you again Shankarji. 🙏
Was intrigued about investing in gold etfs, but alas any instrument which gets taxed according to my tax slab is a dead instrument for me. Will stick to my equity only approach, thanks.
Shankar Nath Sir... please provide financial management /retirement strategy for Unmarried and people without children..i believe the financial needs of this group is different...big fan of you..keep up the great work sir.
Thanks for the information video. You have partially clarified my doubt regarding taxation on sgb Kindly make a video on which broker is better to open a demat account in minors name
Thank you so nuch for very informative video. Since most of the SGBs r trading at almost 10% higher than current price, etf is a better choice in gold investment? Also plz advise is it worth transferring the sgb investment to gold etf for better returns?
Thank you so much for such informative video sir... I have got two queries 1. Can I hold SGB for more than 8 years 2. What'll be the redemption process after 8 year..will the redemption amount will be automatically credited in the account like FD
Most welcome 1. No. Maturity is 8 years 2. Yes, the proceeds go into the bank account. Please read more about redemption process (point 22) at m.rbi.org.in/scripts/FAQView.aspx?Id=109
Shankar sir, am following you seriously from Groww to till date. Here some doubts, is it possible to do SIP in Gold ETF? Kindly share which is better for SIP, weather Gold ETF or Gold MF or Multi asset fund. Which is better for long term. Please guide me through a proper way.
Very good video. Please make a video on the most cost-efficient ways to convert physical gold and jewelries into SGB in demat form or certificates. TIA.
One thing that I would like to mention is that Physical Gold is "portable investment" - which means you can pass to your generation and can be liquidated at any point of time
Definitely an analysis class apart from others.❤. Please clarify if the maturity proceeds are directly credited to the buyer in case of SGB or any specific process is to be followed. Regards
Hello Shankar Thank you so much for putting such high quality content , I really appreciate the way you cover every topic , keep it coming I had a question about a financial decision that has to be taken with regards to loans , let’s say we have a equity and debt mix portfolio and we have accumulated at cagr 10% over 10 years , if we have to buy a house / car how do we decide if we proceed with taking a loan or diluting the portfolio to buy house and then start building the portfolio If we end up selling our portfolio we have to start from zero and we kill the concept of CAGR , how do we approach such situations
Thank you Anirudh. Personally, I distinguish between trade-offable goals and cant-be-avoided goals. If a car or home comes under cant-be-avoided, I simply go for it as it is the need of the hour. Coming to your query, I would have pushed out the debt part first to finance the purchase to the extent possible .. and for the rest of the balance I would have gone with a loan. The reasons for this are: 1. Especially if its a house, the overhanging theme is that I have replaced debt with real estate in my portfolio 2. Generally, we prepay loans so as my savings increases & I figure out more ways to making money, I will be able to foreclose the loan part in maybe half the time. So within 6-7 years, I will be debt-free with a house and with my equity portfolio intact as it was earlier.
Yes, zero ho sakta hai but chances kaafi kam hain. Zero matlab 100% fall in stock price .. maximum drop maine jo aajtak dekha hai, wo hai 75% in year 2008.
Gold is not an investment but an insurance against the system/government so I would prefer physical gold which I can touch and hold having zero counterparty risk.
Thanks for the informative video Shankar 🙏🏽 When I lookup for SGB on zerodha I see different prices for each tranche/series. I'm confused! Do we just buy the cheapest? Shouldn't the rates reflect the current gold price, hence all be equal? 🤔 Is there any advantage of buying older/newer series from a maturity standpoint?
Most welcome. I'll explain it differently. Say, you hold two bonds. Bond X's interest will be paid out next week and Bond Y's interest will be paid out next year. Will you offer me the two bonds at the same price? Probably not! So the yield is one of the elements that determines the price of an SGB at a particular point of time. Other than that, there is always the demand/supply, the tenure of the SGB, the taxability for the bond holder etc. that determine the pricing of a bond.
Brilliant video Shankar Sir. I have invested via monthly SIPs in Gold ETFs for the last 1-2 years. They have been delivering, especially in the previous 3-4 months. Will you please also talk about Silver ETFs sometime in the future? Why can't silver be used as a hedging instrument?
Thank you for your appreciation and suggestion, Rohan. Silver is not similar to Gold from many perspectives and it makes a very weak hedge. On the internet, pls chart out the last 20 years of silver prices and you'll see a resemblance to how the equity markets have moved.
Namaste. I am not sure if there is an alert for this but RBI releases a schedule on its website. Something like this: rbi.org.in/Scripts/BS_PressReleaseDisplay.aspx?prid=55856 One trick you can use is to make a Google Alert. For example, 2 series of SGB for 2023-24 is already out. Which means the next series will be called "2023-24 Series III". So go to google alert and make an alert for "2023-24 Series III". Now whenever, any news website mentions this phrase, you will receive an email. Maybe you can try this. Or else, you can use platforms like Fisdom and others who sell SGB. So a few weeks before Series III comes out, they will send you a notification. Hope this helps
Great video! My question - What should an investor do (after 8 years) post SGB maturity if Government discontinue SGB scheme.. then How do you suggest to hold more than 20 years, Gold ETF or SGB ?
Thanks. Upon maturity of SGB, you can reinvest the proceeds in: a) another new tranche (if RBI makes it available) b) invest in an existing tranche via the secondary market c) look beyond SGBs and invest in other options like Gold ETFs
I would raise caution here. The DSP World Gold Fund's underlying asset is the Black Rock Global Funds - World Gold Fund. This Black Rock product invests in mining companies and therefore tracks the share price of the mining companies and not the price of gold. Case in point is what happened an year back. In April 2022, the DSP World Gold Fund fell by 30% over the next 6 months (because global stock markets fell by 30%) .. but the price of gold was pretty stable and fell by 3 or 4%. So if you held the DSP World Gold Fund then the investor would have been down by 30% during that period but proper Gold Funds/ETFs stayed the course.
Planning to get married in 4 years.. So for buying jewellery should i go for equity MF investment or these options of gold investment!? Please let me know sir.. 🙏🙏
9:36 ah! What a golden revelation for me! Was wondering why I should go for gold etf when gold mutual funds have lower expense ratio. But this makes it clear! Thank you.
Most welcome! 🙌
Dont forget the charges of a Stock Broking Co., while buying GOLD ETFs. You got to pay Brokerage/tran, GST, SEBI Cess, Nirmala Sitaraman Cess etc., etc.,
@@gowrishankarkn6499 do these charges apply for GOLD MFs as well or only gold ETFs?
I personally invest 10% of my SIP amount into edelweiss gold and silver fund of fund. Gives me exposure to 5% of gold and silver each in the entire portfolio. Every quarter the fund rebalances the ETFs held to be 50:50, this also helps in capturing the change in gold-silver ratio. At the time of rebalancing, if gold is overvalued compared to silver, profits will be booked from the gold side and get invested in silver without having to realise capital gains and vice versa for silver. It has already given me 7.8% return over the last 2 months. If asset rebalancing is something one does, then fund like this will help.
Thanks for sharing your strategy and views, Suhas
Golden advice, golden words & very informative! Thanks for sharing this in-depth video! Keep them coming!
Thank you very much, Ravi. Glad you found it useful and informative
Thank you Mr. Nath for another informative video! The depth, comprehensiveness and lucidity of your videos make them very helpful especially for the new learners. Keep up the good work!😊
Thank you very much for your kind appreciation and encouragement. I'm glad you are finding the videos useful and relevant
I am not only learning Financial from Shankar Sir, but as IT professional ,how to present the data in professional and concise way
Glad to hear that!
Golden information shankar Nath😊
Glad you liked it, Baskar. Thanks!
We've never thought about expense ratio of etf as underlying asset in gold mutual fund. Very useful information. We prefer gold mutual fund option due to liquidity advantage at convenience and completed asset allocation before 31st March 2023 to ensure indexation benefits. In future it's better to use dynamic asset allocation mutual fund due to taxation advantages...
Glad it was helpful!
Perfect video for one who wants to start investing in gold.
Thank you!
This video is pure gold. 😉
I've not invested much in gold but this year I plan to do so.
Imo the returns of SGB look attractive but its moderate liquidity is a concern. Everyone likes it because of govt backing but that is the risk too. We never know when the govt will tinker with the 2.5% additional interest when it feels like just like it plays around with PPF interest rates.
By the looks of it a Gold ETF is better with physical backing of gold and high liquidity.
Thanks
1. I agree, there will be some changes to the form & shape of SGB. It need not be in terms of interest only, the government can also change taxation and it will at some point of time because the no capital gain tax is unfair to gold ETFs/MFs which can go upto 30% tax
2. In my view, short term tactical gold plays are better served with gold ETFs and long term strategic allocations can be done via SGBs
@@shankarnath If at all Govt of the day in the future decided to tax the capital gains, would it be retrospective or for the upcoming issues?
@@venkatesh4715 I'm sure this clarification will also come from the government
Exactly the video I was looking for! Thanks @shankarnath!
My pleasure 😊
Golden way to explain Gold investment 🎉
Glad you liked it
Thanks
Thank you Nipun ji for your kind appreciation and for this gratuity. I'm happy you are finding my work informative and relevant
Very well explained got many of my doubts cleared Thank you
You are welcome 🤗
Could you please make a video on how to build wealth , right from emergency fund to retirement planning, for varied incomes, like if I were to earn 50k per month, how should I go about my savings, investments and expenses. This will b really helpful. Thank you!
Thanks for the suggestion
Again , Premium content .
This show's you have done good homework for the vedio. Keep it up.
Thanks a ton
I was amazed when I watched your video on gold investments, it was explained in depth, thanks
Thank you Ashok ji. Glad you found it useful
I am a long term investor, kindly advise on good investments 🙏
Immaculate and comprehensive as always... ❤
Glad you think so!
Thank you again for sharing detailed analysis. I did something similar couple of years ago and went with option of ICICIGOLD ETF. Watching it come up on your video reassures my decision. Thank you!
Most welcome!
Golden information shared by golden people only like as you 🎉
Thank you very much 🙌
Thank Shankar sir explain big confusion about gold in easy and simple manner with more clarity.
Glad you found it useful. Thanks for the appreciation
Wonderful presentation. God bless. You are real gem.❤
Thank you! 🙌
Golden and all gold 🪙 information received thank you Shankar sir ji ❤❤
So nice of you. Thanks!
Mr.Shankarnath
Your explanation and presentation is itself a Gold🌟
Subscribed right away and kudos to the team
Thank you very much 🙌
Very well explanation and snippets about the gold investment. Kudos to Shankar Nath.
Thank you very much 🙌
Your videos are as awesome as GOLD, thank you!
Thank you
Thanks for an insightful video,much appreciated. 🙏
Most welcome, glad you liked it
This is what exactly I was looking for 🎉🎉 thanks for all info
Glad it was helpful!
wow...very good information. Thanks a lot for your effort
You are most welcome 🙌
Well explained. Keep sharing your knowledge. Rgds
My pleasure
Great video, Shankar nath
Thank you very much!
Thank you shankar I have subscribed your channel couple of days back ... and i have covered almost 75% of your videos. I am gonna share to my family surely you need better reach and subscriptions .Keep going 🎉
Thank you Ashok ji. Glad you found it useful
Well Presented sir . Good work !
Thanks a ton
Excellent content sir. Lots of information..
Glad you found it useful
Excellent Shankar👍
Thanks!
Very Informative... Thank you Mr.Sankar Nath
Most welcome, glad you liked it
Wow! Your content never fails to impress 😊
Thank you! Glad you liked it
Hello Shankar sor I had been waiting for this video for long
Good to know. Hope you find it useful
Thanks Shanker. Great learning!!
My pleasure! 🙌
Very useful information. Appreciate your efforts as always.
Thank you very much
Namaskar Sir, randomly came to your channel yesterday and found a gem 😊. Sir one request if this channel is almost dedicated to Indian people, may I ask you to make videos in English and Hindi as well. Many people will get benefit. It's a humble suggestion.
Namaste Priti ji. Thank you very much for your appreciation. You raise a valid point as have many people and I've realised the decisions I have to make are no different than anyone, you & me included make on a daily basis at work, at one's house, in relationships etc. We evaluate the scenario, come up with solution and pick the one that is systemically viable. Please allow me to explain my thought process
The English-v-Hindi decision was required given my own physical & mental abilities. My videos require a lot of research, scripting and editing which takes up all 7 days of my week to produce 2 videos. To avoid stress, I take a small 3 day break after every 6-7 videos. If I were to look at English and Hindi - then the quantity of videos will come down, maybe 1.5 videos a week or worse, the quality of research will come down. It is also possible that TH-cam might start penalizing me for being infrequent or posting duplicate content which means patrons like you might not discover me.
Effectively, as a full-time content creator, there are three people I need to take care of in equal measure:
1. Me (priorities: adequate videos, revenue, mental & physical fatigue)
2. Viewers (priorities: quality video production, well-researched content)
3. TH-cam (priorities: number of videos, CTR, average view time)
At this point, I feel I have balanced the priorities of all three stakeholders to the best of my abilities. Any modification will either require trade-offs or I'll have to introduce additional variables like hire people, change video format etc. I'm certainly looking at different aspects of it and over the comings months, you'll see much of that in action.
Once again, thank you for your note.
Superb content as always
Thank you so much
Xcellent information towards economic growth 🎉 🙏 thanks alot
Most welcome
So nice of you sir, very informative
Glad you liked it Pawan ji
Very nice explanation sir...Tks a lot...
You're most welcome
Subscribed! Very thorough analysis.
Welcome aboard!
Excellent analysis sirji 🙏🏾. Good start by laying the plot with historical facts & figures.
Glad you liked it
Thank you sir. Nobody gave the nuance of mutual fund expense ratio . Thank you. Mf Expense ratio plus etf expense ratio
Most welcome
Awesome analysis
Thank you!
Very good well informed video👍👍👍👍
Thanks for liking
Very useful video ❤
So glad!
Very good information
So nice of you. Thank you!
Thank you for sharing the knowledge.
My pleasure! Glad you found it helpful!
VERY INFORMATIVE
Glad it was helpful!
@shankarnath SGB NEW issues is it discontinued by govt ?
You can get SGBs in the secondary market for 3-7℅ discount. If we are sure of holding it till maturity, we can use this as a good discount
How can you get SGB in discount than issue price?
Great information!!!!
Thank you!
Great Going keep up the good work
Thanks 🙌
Super info sir ..
Thanks and welcome
Very informative sir…
So nice of you. Thanks!
perfect information
Thanks!
Great video 🎉
Thank you Shabeer
Hi Shankarji, thanks for a crystal clear and a goldmine video on gold as an investment. Could you please suggest some Gold ETFs as a part of a 20 year long term portfolio? I’m yet to invest in gold. Just bought 1 tranche of SGB back in 2020 but later didn’t buy due to lack of liquidity (uncertainty of staying invested in 8 long years in case of an emergency). Any suggestions on good gold ETFs would be highly solicited. Thank you again Shankarji. 🙏
Please make a video explaining how to exactly purchase sgb’s as most is them doing know how to!
Thanks for the suggestion
Was intrigued about investing in gold etfs, but alas any instrument which gets taxed according to my tax slab is a dead instrument for me. Will stick to my equity only approach, thanks.
Pls consult a tax advisor. Gold ETF taxation has changed since July of this year
Shankar Nath Sir... please provide financial management /retirement strategy for Unmarried and people without children..i believe the financial needs of this group is different...big fan of you..keep up the great work sir.
Thanks for the suggestion
Really nice appreciable content as always ❤
Thank you very much, Parag. Much appreciated
Thanks for the information video.
You have partially clarified my doubt regarding taxation on sgb
Kindly make a video on which broker is better to open a demat account in minors name
Most welcome & thanks for the suggestion
Awesome video.
Thank you very much, Cmdr. Unercat, glad you liked it
Excellent video
Thank you!
will I be eligibale for the 2.5% interest rate if I have bought SGB from secoundry market?
Thank you so nuch for very informative video. Since most of the SGBs r trading at almost 10% higher than current price, etf is a better choice in gold investment? Also plz advise is it worth transferring the sgb investment to gold etf for better returns?
very important video
Glad to hear
Thank you 👍🏾
Most welcome
Awesome information
Thanks 🙌
Thank you so much for such informative video sir...
I have got two queries
1. Can I hold SGB for more than 8 years
2. What'll be the redemption process after 8 year..will the redemption amount will be automatically credited in the account like FD
Most welcome
1. No. Maturity is 8 years
2. Yes, the proceeds go into the bank account. Please read more about redemption process (point 22) at m.rbi.org.in/scripts/FAQView.aspx?Id=109
Thank you, Sir, but also make a video on silver.
Thanks for the suggestion
Any thoughts on investing 'Nippon India ETF Gold BeES'? How does it compare to Digital Gold, ETF and mutual fund? Thanks in advance!
Sir please make a video about how to buy SGB s at discount in secondary market and benefit
Thanks for the suggestion
Shankar sir, am following you seriously from Groww to till date. Here some doubts, is it possible to do SIP in Gold ETF? Kindly share which is better for SIP, weather Gold ETF or Gold MF or Multi asset fund. Which is better for long term. Please guide me through a proper way.
Hi. Yes, I believe trading platforms like Zerodha, Upstox, Groww, Fisdom and others offer this option of setting up an SIP for ETFs.
@@shankarnath Dear sir, I had tried but there is no such option available in Groww. Also kindly tell that Gold ETF or Gold Fund. Which is better?
wonderful content really worth it for the research and innovative thinking
Thank you so much!
very helpful video
Glad it was helpful!
Very good video. Please make a video on the most cost-efficient ways to convert physical gold and jewelries into SGB in demat form or certificates. TIA.
Thanks for the suggestion
very good video, thanks
You are welcome!
One thing that I would like to mention is that Physical Gold is "portable investment" - which means you can pass to your generation and can be liquidated at any point of time
Thanks for sharing
Thank you Shankar sir for this video. If possible can you please make a video on filing ITR using ITR-1 and ITR-2
Most welcome and thanks for the suggestion. I'm not adept at taxes so it will be an out-of-place, out-of-sorts experience for me. Very sorry
No worries sir.
Very useful video sir, thank you!
Kindly make a video how expense ratio is calculated with an example. TIA.
Thank you for the suggestion
Definitely an analysis class apart from others.❤. Please clarify if the maturity proceeds are directly credited to the buyer in case of SGB or any specific process is to be followed. Regards
Thank you. Yes, the FAQs say so. Pls refer to point 22
m.rbi.org.in/scripts/FAQView.aspx?Id=109
I don’t see my sgb interests Credit can I see it some where?
Hello Shankar
Thank you so much for putting such high quality content , I really appreciate the way you cover every topic , keep it coming
I had a question about a financial decision that has to be taken with regards to loans , let’s say we have a equity and debt mix portfolio and we have accumulated at cagr 10% over 10 years , if we have to buy a house / car how do we decide if we proceed with taking a loan or diluting the portfolio to buy house and then start building the portfolio
If we end up selling our portfolio we have to start from zero and we kill the concept of CAGR , how do we approach such situations
Thank you Anirudh. Personally, I distinguish between trade-offable goals and cant-be-avoided goals. If a car or home comes under cant-be-avoided, I simply go for it as it is the need of the hour. Coming to your query, I would have pushed out the debt part first to finance the purchase to the extent possible .. and for the rest of the balance I would have gone with a loan. The reasons for this are:
1. Especially if its a house, the overhanging theme is that I have replaced debt with real estate in my portfolio
2. Generally, we prepay loans so as my savings increases & I figure out more ways to making money, I will be able to foreclose the loan part in maybe half the time. So within 6-7 years, I will be debt-free with a house and with my equity portfolio intact as it was earlier.
Hello Shankar thank you so much for the explanation!!
This video is gold :-)
Thank you very much!
Good evening, if I purchase SGB from secondary market then what should be it's maturity time - 8 years or balance years.
Balance/residual time
Kya small cap mutual fund NAV zero ho sakti hai bear market me please reply
Yes, zero ho sakta hai but chances kaafi kam hain. Zero matlab 100% fall in stock price .. maximum drop maine jo aajtak dekha hai, wo hai 75% in year 2008.
Gold is not an investment but an insurance against the system/government so I would prefer physical gold which I can touch and hold having zero counterparty risk.
What if the sovereign gold bonds are sold after maturity period ? Meaning after 8 years ? Then is liquidity high ?
You don't have to "sell" at maturity. At maturity, RBI will pay you back the maturity money. No question of liquidity crunch
I'm just a beginner and investing in gold. Should I do it and grams and coins? Don't have much money question?
Thanks for the informative video Shankar 🙏🏽 When I lookup for SGB on zerodha I see different prices for each tranche/series. I'm confused! Do we just buy the cheapest? Shouldn't the rates reflect the current gold price, hence all be equal? 🤔 Is there any advantage of buying older/newer series from a maturity standpoint?
Most welcome. I'll explain it differently. Say, you hold two bonds. Bond X's interest will be paid out next week and Bond Y's interest will be paid out next year. Will you offer me the two bonds at the same price? Probably not! So the yield is one of the elements that determines the price of an SGB at a particular point of time. Other than that, there is always the demand/supply, the tenure of the SGB, the taxability for the bond holder etc. that determine the pricing of a bond.
@@shankarnath Thanks for the explaination, that makes sense.
Brilliant video Shankar Sir. I have invested via monthly SIPs in Gold ETFs for the last 1-2 years. They have been delivering, especially in the previous 3-4 months. Will you please also talk about Silver ETFs sometime in the future? Why can't silver be used as a hedging instrument?
Thank you for your appreciation and suggestion, Rohan. Silver is not similar to Gold from many perspectives and it makes a very weak hedge. On the internet, pls chart out the last 20 years of silver prices and you'll see a resemblance to how the equity markets have moved.
Is it possible to do SIP in Gold ETF. Kindly explain how
Namaste sir, can you please let me know that how can I get notified when RBI issues SGB ?
Namaste. I am not sure if there is an alert for this but RBI releases a schedule on its website. Something like this: rbi.org.in/Scripts/BS_PressReleaseDisplay.aspx?prid=55856
One trick you can use is to make a Google Alert. For example, 2 series of SGB for 2023-24 is already out. Which means the next series will be called "2023-24 Series III". So go to google alert and make an alert for "2023-24 Series III". Now whenever, any news website mentions this phrase, you will receive an email. Maybe you can try this. Or else, you can use platforms like Fisdom and others who sell SGB. So a few weeks before Series III comes out, they will send you a notification.
Hope this helps
@@shankarnath Thank you sir. This was a detailed information.
Great video! My question - What should an investor do (after 8 years) post SGB maturity if Government discontinue SGB scheme.. then How do you suggest to hold more than 20 years, Gold ETF or SGB ?
Thanks. Upon maturity of SGB, you can reinvest the proceeds in:
a) another new tranche (if RBI makes it available)
b) invest in an existing tranche via the secondary market
c) look beyond SGBs and invest in other options like Gold ETFs
DSP World Gold Fund is another way to play the gold theme.
I would raise caution here. The DSP World Gold Fund's underlying asset is the Black Rock Global Funds - World Gold Fund. This Black Rock product invests in mining companies and therefore tracks the share price of the mining companies and not the price of gold. Case in point is what happened an year back. In April 2022, the DSP World Gold Fund fell by 30% over the next 6 months (because global stock markets fell by 30%) .. but the price of gold was pretty stable and fell by 3 or 4%. So if you held the DSP World Gold Fund then the investor would have been down by 30% during that period but proper Gold Funds/ETFs stayed the course.
Planning to get married in 4 years.. So for buying jewellery should i go for equity MF investment or these options of gold investment!? Please let me know sir.. 🙏🙏