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SGB & ETF

Sovereign Gold Bonds + index ETFs — tax-efficient alternatives to physical gold and active funds.

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Why SGB & ETF via Praarabdh

SGB beats physical gold

Sovereign Gold Bonds pay 2.50% p.a. interest on top of gold-price tracking, plus zero making charges, zero storage cost, and zero LTCG tax if held to maturity.

Index ETFs eliminate manager risk

Nifty 50 / Nifty Next 50 / Sensex ETFs match the index by construction — no fund-manager underperformance, ~0.10% expense ratio.

Smart-beta ETFs available

Low-volatility / momentum / quality factor ETFs — disciplined factor exposure without paying active-fund TER.

Top 3 partner options — SGB & ETF

SGB 2024-25 Series

2.50% + gold price
8-yr maturity, 5-yr exit
Zero LTCG if held to maturity

Nifty 50 ETF

0.05-0.10% TER
10-yr CAGR ~13%
Best for passive core

Nifty Smallcap 250 ETF

0.30-0.40% TER
10-yr CAGR ~16%
Best for satellite allocation

Indicative figures. Actual offer depends on your profile. Praarabdh is a Data Fiduciary under the DPDP Act, 2023.

SGB & ETF — frequently asked

Why SGB over physical gold?

Physical gold loses 8-12% on making charges. SGB gives you 2.50% interest + gold price tracking + zero making charge + zero storage cost + zero LTCG if held to maturity.

Are SGBs liquid?

SGBs trade on NSE/BSE — you can sell anytime. There's also a sovereign call-back option after year 5.

Index ETF vs index fund?

Both track the same index. ETFs trade intraday like stocks (need a demat); index funds via AMFI route (no demat). Cost difference is marginal.

What about gold ETFs vs SGB?

Gold ETFs lack the 2.50% interest — pure price tracking. SGBs are better if you can hold 5-8 years. ETF wins for shorter holds.

Ready to apply for SGB & ETF?

One short form. We compare the panel for your profile. A real Praarabdh advisor calls within 48 hours.

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