SGB Analyzer

Hello guys, we all know how important asset allocation is when it comes to investing! One of the most proven hedges against Equity has been Gold for the past 50 years. Gold has a very negative correlation most of the time against equity.

In India, it's been well known since the last few years, when RBI has launched the SGB (Sovereign Gold Bonds) scheme, that it is one of the best if not the best investment product for getting exposure in Gold.

RBI have launched many tranches of SGBs since 2015. They have a great tax advantage to it as well if someone has held SGB till maturity, capital gains tax will not be charged. It also comes with a 2.5% simple interest paid semi-annually, along with price appreciation according to the Gold price.

With such benefits, one would want to have their gold portfolio in SGBs and now due to market inefficiencies, you can buy these SGBs from the secondary market (NSE/BSE) for much cheaper than their fair value as of today rather than buying from the primary market.

I have created this tool to analyze and compare different SGB issues, calculate this difference (i.e. discount) between the Fair value of that SGB versus its current market price.