In the digital age, investing in gold doesn’t mean you need to hold the physical metal. Sovereign Gold Bonds (SGBs) offer a smart, secure way to invest in gold digitally, combining the reliability of government backing with the ease of online trading. This concise guide will walk you through purchasing SGBs through Zerodha, India’s leading brokerage firm, offering a straightforward path to add gold to your investment portfolio. Ready to delve into the golden opportunity with Zerodha? Let’s get started on this seamless investment journey.
How to Buy Sovereign Gold Bond Online in Zerodha? (Step by Step Method Explained)
Buying Sovereign Gold Bonds (SGBs) online through Zerodha is a straightforward process that can be accomplished using the Kite app or web platform. These steps will guide you through purchasing SGBs, ensuring you can invest in digital gold format securely and efficiently, without the need to buy physical gold. Here’s a step-by-step method to buy SGB online in Zerodha
For Kite App Users
- Open the Kite App: Start by launching the Kite app on your smartphone.
- Navigate to Bids: Tap on the ‘Bids’ option within the app.
- Select Govt. Securities: From the bids section, choose ‘Govt. securities’ to view available SGB options.
- Place Your Bid: Tap on ‘Place bid’, enter the amount or number of units you wish to purchase, and then confirm by tapping ‘Submit’.
This process allows Kite app users to invest in SGBs directly from their mobile devices, offering convenience and flexibility.
For Kite Web Users
- Log In to Kite: Access kite.zerodha.com and log in with your credentials.
- Access Bids: Click on the ‘Bids’ section from the dashboard.
- Choose Govt. Securities: Select ‘Govt. securities’ to find the SGBs you’re interested in.
- Bid Placement: Click on ‘Place bid’, enter the desired investment amount or unit number, and confirm your bid by clicking again on ‘Place bid’.
Kite web users enjoy the same seamless process as app users, with the added comfort of a larger screen and possibly more detailed navigation.
Important Points to Note:
- SGBs are considered a secure investment as they are backed by the government, offering a low risk of default.
- Investors earn an annual interest of 2.5% on the invested amount, which is credited directly to their bank account.
- The redemption period for SGBs is after 5 years, and they mature in 8 years, with the redemption amount automatically credited to your bank account.
- The investment value fluctuates with the current market price of gold.
- SGBs can be sold in the Demat form to eligible investors before maturity.
This method provides a hassle-free way to invest in gold digitally, combining the safety of government backing with the liquidity and ease of stock market trading.