SGB 2019-20 Series I Early Exit: Investors See 4x Return as RBI Sets Price

• SGB 2019-20 Series I investors can exit prematurely today, with the RBI setting the redemption price at Rs 12,801 per unit.
• Investors are poised for over 210% returns (4x their investment) in 5.5 years, excluding the 2.5% annual interest payouts.
• The redemption price of Rs 12,801 per unit is a substantial increase from the issue price of Rs 3,119 per unit.
• SGBs have an 8-year tenure, but premature exit is permitted from the 5th year on semi-annual interest payment dates, initiated through the purchasing bank or post office.
• The Sovereign Gold Bond scheme offers dual benefits: a fixed 2.5% annual interest and capital appreciation linked to gold prices, aiming to reduce physical gold imports.

Why It Matters: SGBs offer huge returns, making them a lucrative investment option.