I admit I don’t have any prior investment experience. I am planning to buy Sovereign Gold Bond (SGB) during the next tranche. I read https://www.hdfcsec.com/sovereign-gold-bond-scheme-2020-21, but I still have some doubts. If you are familiar with SGB or have SGB experience, could you please help me? Kindly appreciate your answers. Thank you.
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I want to buy SGB online in order to take advantage of the Rs50/g discount. Must I open an online trading account first? Is Demat the only issuance form if I buy SGB online? I don’t plan on other investment activities. Is there a way to avoid demat account and other account maintenance fees? Or could you recommend an easy-to-use online platform and account with minimal or zero fee? How long does it usually take to set up an online account? I want to make sure the account is ready before the next tranche opens. I currently bank with HDFC and ICICI if this matters.
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Other than online, can I also buy SGB from any bank or post office? Is it still required to open a trading account? Can I just go directly to the bank/post office on any issue day and finish the purchase transaction in the same day?
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Will I be guaranteed to buy SGB at the issue price? If there is too much demand, will it cause the purchase price to increase above the issue price? Except the 1% commission fee, are bank/agent allowed charge more fees?
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Is there a national quota on the total amount of issuing SGB in each tranche? Is it possible all SGB are quickly sold out before the end of the tranche period? Any need to hurry?
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After 8-year maturity period is over, must I redeem SGB immediately, or can I keep SGB in my account and redeem it later? What will be the redemption price if I redeem it later?