SGB 2018–19 Series V Delivers 370% Return; RBI Sets Premature Redemption Price

• Sovereign Gold Bond (SGB) 2018–19 Series V is eligible for premature redemption on January 22, 2026, after completing five years.
• The Reserve Bank of India (RBI) has set the premature redemption price at Rs 14,853 per unit, a significant increase from its original issue price of Rs 3,214 in January 2019.
• Investors who put Rs 1 lakh into this tranche could see their investment grow to Rs 4.6-4.7 lakh, representing a 360-370% gain, excluding interest.
• The redemption price is calculated based on the simple average of 999 purity gold's closing price over the preceding three business days, as published by IBJA.
• SGBs offer a dual benefit: potential gold price appreciation and a 2.5% annual interest, paid semi-annually, with capital gains tax exemption on maturity.

Why It Matters: SGB 2018–19 Series V offers investors a massive 370% return, highlighting the scheme's profitability.