A STUDY ON AN ALTERNATIVE INVESTMENTS WITH SPECIAL REFERENCE TO SOVEREIGN GOLD BONDS

Abstract

Formal education in schools and colleges failed to educate people in savings and investments. The inflation and robbery cases are very horrible and terrible in our country. The purchase and wearing of gold jewels can be allowed up to the need level, but beyond that need, if gold is purchased for wearing, it is difficult to storage of ornaments. People can keep in bank lockers, but locker charges must be borne by people. It is advised people to have minimum investment on physical gold in the form of ornaments for need purpose, beyond that, gold must be invested in SGBs since they are guaranteed by the central government. The present study is based on secondary data such as text books, newspapers, journals and you tube videos. The main findings of the study includes, The SGBs investment is limited to only Indians, The bond is issued by the Reserve Bank of India on behalf of central bank of India, The SBGs are very comfortable and convenient mode of investment since the purchase, storage and sale happens in online mode. 11% returns are given as CAGR from 20 years average and only 7 years we have experienced negative returns out of 40 years. It is observed that gold is the best investment against share market fall. A message has been passed to ladies to think again and again before wearing more gold ornaments due to risk by thieves.