SGB 2017-18 Series Yields 316% Return on Maturity, Investors to Get Final Redemption Payment of ₹12,066

Investors in the Sovereign Gold Bond (SGB) 2017-18 Series VI are in for a substantial gain, as the Reserve Bank of India (RBI) has declared the final redemption price at ₹12,066 per unit on maturity due November 6, 2025. This not only marks the end of the 8-year holding period but also delivers an impressive return for long-term gold investors.

Final Redemption Price Set at ₹12,066 for SGB 2017-18 Series VI

The RBI has announced that the final redemption price for SGB 2017-18 Series VI, maturing on November 6, 2025, is set at ₹12,066 per gram. This is a substantial increase from the issue price of ₹2,895 for online investors and ₹2,945 for offline investors during November 2017. 

This offers an absolute return of nearly 317%, excluding the interest. The series was part of the Sovereign Gold Bond Scheme and had a maturity tenure of 8 years.

Initial Investment and Interest Earnings

Issued at ₹2,895 for digital applicants, the investors not only benefited from capital appreciation but also enjoyed a fixed 2.50% annual interest on the initial investment amount, paid semi-annually. The final interest payout will be made on the maturity date, along with the redemption amount, directly credited to the registered bank accounts.

Redemption Benefit for Different Application Modes

For offline investors who purchased at ₹2,945, the return still totals nearly 310%. Investors who applied online and paid digitally received a ₹50 discount, raising their absolute returns marginally higher. The capital gain from the redemption for individual investors is tax-free, making the investment even more lucrative for those who held on till maturity.

Read More: SGB Redemption Rules 2025: How to Exit Early and What Happens If You Miss the Date!

Action Points for Investors

Investors should confirm their tranche information and ensure all bank details are updated to receive the maturity proceeds and final interest payment. No physical redemption request is required; the process will be automatic for all eligible unit holders.

Conclusion

SGB 2017-18 Series VI has delivered an outstanding 316% return over its 8-year term, excluding interest payments. With the final redemption price announced at ₹12,066, long-term investors have reaped the full benefit of the scheme's structure and tax advantages designed for gold-backed security returns without storage hassles.

Disclaimer: This blog has been written exclusively for educational purposes. The securities or companies mentioned are only examples and not recommendations. This does not constitute a personal recommendation or investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

Investments in securities are subject to market risks. Read all related documents carefully before investing.