Ways of investing
What is sovereign gold bond?
A government bond whose value tracks the price of gold.
Explained in more detail
It paid 2.5% annual interest on top of gold price movement, with no storage or purity worries. The government stopped issuing new ones after February 2024, so they can now only be bought from other investors on the exchange.
An example
For instanceOne unit represents one gram of gold, settled in cash at maturity.
Why this matters to you
You will meet this word in broker apps, company results and market news. Knowing what it means is not the goal on its own. The goal is being able to judge whether a number is good or bad for the investment you are actually holding.
On AlphaVik, any time sovereign gold bond appears in a view or a lesson, you can hover or tap the word and this explanation comes with it. You never have to leave the page to look something up.