Sovereign Gold Bond Investors See 260% Return on Early Redemption

• Investors in SGB 2019-20 Series VIII can prematurely redeem bonds at ₹14,432 per gram.
• The original issue price for this tranche on January 21, 2020, was ₹3,966 per gram.
• Excluding interest, investors achieve an absolute return of approximately 264% over six years.
• This translates to an annualised Compound Annual Growth Rate (CAGR) of about 24%.
• Premature redemption is allowed after five years on interest payment dates; full maturity is eight years.

Why It Matters: SGB investors achieved over 260% return on early redemption, highlighting gold's strong performance.