Zerodha Gold Bond

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Everyone who actively participates in investment in the market must have heard about the Zerodha Gold Bond.

In simple terms, it is the government securities denominated in grams of gold.

For those who are not willing to hold the physical securities prioritize to invest in gold through Gold Bonds.

On maturity of the bond, the value will be redeemed in cash with a good interest in hand.

The investors who want to invest by maintaining a risk-free environment must choose Gold Bonds.

So for those who are wondering is Demat account required for Sovereign Gold bond then here it totally depends upon the security you want to provide to your investment.

Among many brokers,Ā Zerodha too offers the provision for the investment in Gold Bonds.

The investment done on the quantity of gold stays protected as you will receive the price of the market at the time of redemption. Thus, it is associated with the least associated risks.

Also, Gold bonds are free from certain issues like making charges, purity of gold, etc as the bonds are held in the books thus eliminating the risk of any loss.

Zerodha Gold

You can buy the Sovereign Gold bond through Zerodha easily and conveniently.

Since the sovereign Gold bonds are issued by the Government of India with the fixed interest per annum (2.50% per annum).

You can reap interest earned twice a year and the last interest is provided on the maturity along with the principal.

You can avail the Zerodha Gold Bond in Demat or paper form that can be traded easily on the NSE (National Stock Exchange of India Limited).


Zerodha Gold ETF

ETF is something that one can buy and sell on stock exchanges like shares. It is similar to mutual funds in which trading is done in the stock exchange and the asset can be bought or sold using a Demat account.

Zerodha Gold ETFs hold the asset in the form of Gold Bullion of 99.5% purity thus there is the least issue of purity of the asset.

Gold ETF is one of the types of exchange-traded funds the asset for which is gold price in India. That is why you should always keep a check on Fluctuation in Gold Price.

No doubt investing in Zerodha ETF rather than the physical form of Gold is more beneficial as it eliminates the risk of getting less price due to impurity, offers more transaction costs.

Also, an investor can trade in Zerodha Gold ETF anytime during the trading session and that too by buying the least quantity equal to 1 gram.

Here is a brief explanation of why one should invest in Zerodha Gold ETF rather than investing in physical form.


Zerodha Gold Margin

The minimum investment on Zerodha Gold Bond that one can do is 1 gram and the maximum investment is 4 kg for an individual.

Other than this the margin for investment for

  • HUF is 4 kg
  • Trust and other similar entities are 20 kg per fiscal.

Zerodha Gold Trading

For trading in Sovereign Gold through Zerodha, one needs to open a commodity account with Zerodha.

For investing in gold investors are left with three major choices:

  • Either to invest in the physical asset
  • Purchasing ETF that replicates the price of gold
  • Trading Futures and options in the commodities market.

Zerodha Gold Brokerage

The opening charges of commodity account are ā‚¹200 payable at one time and brokerage charges are 0.01% or ā‚¹20 whichever is lower.

Commodity trading does not charge any annual maintenance charges.


Zerodha Gold Bond Login

The Sovereign Gold bonds are listed on the exchange and are available on Kite after the time-period of 10-25 days.

To buy the Sovereign Gold Bond through Zerodha you need to log in to through the Zerodha Kite app using your id and Zerodha password.

After logging in entering the quantity that you wish to bid for. After placing an order the message is displayed on the screen mentioning the acceptance of the order.


Conclusion

Investment involves good knowledge and the best is the one that involves the least risk of any loss.

When it comes to the security of investment, Zerodha Gold Bonds proves to be fruitful. Open the commodity trading account with Zerodha and start investing in Sovereign Gold bonds through Zerodha.


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