SGBAUG28V or SGBAUG28V-GB is the name of a Sovereign Gold Bond series that is listed on the National Stock Exchange and was issued on 11th August 2020 by the RBI. It was open for subscription from Aug 03, 2020, to Aug 07, 2020. As per the Reserve Bank of India, SGBs or Sovereign Gold Bonds are government securities denominated in grams of gold. These are the substitutes for holding physical gold which provides periodical semi-annual interest to the investor till the redemption date (Generally Interest rate is 2.5% on Issue Price).
SGBAUG28V Issue Price
Here the issue price is the highest till now. It was determined at the time of the peak of gold prices because of this here the issue price or the face value is Rs. 5334/- which is the highest among all the SGBs.
Interest on SGBAUG28V
Here the interest amount is calculated on the face value amount which is Rs. 5334/- and pays interest of Rs. 66.68 semi-annually on 11th August and on 11th February periodically till the maturity date.
How it is going to be redeemed?
On maturity or redemption date which is 11th August 2028, it is going to redeem and will pay back maturity amount which will depend on the Gold Price as per IBJA Rates at the time of maturity. The amount will be credited to your Demat linked bank account on the maturity date.
Why August series is the best SGB?
Because of the high face value here, interest payout is the highest among all listed SGBs, along with this, liquidity is also high in the secondary market. Liquidity is highest due to high subscription in this issue. This SGB issue had the highest subscription as per RBI data (subscription was for 63,49,781 units).
ISIN Code of this SGB
IN0020200161 is the Unique International Securities Identification Number of SGBAUG28V.
How to buy SGBAUG28V?
If you plan to invest in this SGB, you need a Demat account to hold these sgbs and a trading account to place buying or selling order on stock exchanges. If you have a Demat account and a trading account with Zerodha or Upstox then you can easily buy any SGBs from the secondary market. To buy you just need to place an order on NSE by searching the name SGBAUG28V or on BSE you just need to put SGBAUG28. Before investing in this SGB you should calculate the expected return. Calculating return is important because sometimes the prices are at a premium (to know the calculation steps click here).
Bonus
To know about each and every listed gold bonds on stock exchanges you can check out this link and select gold bonds https://www.moneyseth.com/bonds/
Note: Before buying any SGB from the secondary market do calculate your returns so that you don't miss the benefit of interest payment(Sovereign Gold Bond Return Calculation).
If you have a doubt then feel free to ask in the comment section.
