SGB Analyzer

Diversification Seekers

Using SGB for Portfolio Diversification

Add gold to your portfolio the smart way

Gold has historically been a powerful diversification tool - it often moves opposite to stocks and provides stability during market turmoil. Sovereign Gold Bonds offer the most efficient way to add gold to your portfolio.

This guide explains optimal gold allocation, rebalancing strategies, and how SGB compares to other gold investment options for diversification purposes.

Common Challenges

Portfolio too concentrated in one asset class
Worried about market crashes
Don't know how much gold to hold
Unsure which gold product is best
Want hedge without sacrificing returns

How SGB Helps

Gold has low/negative correlation with equities
Provides stability during market turmoil
2.5% interest while waiting for appreciation
Tax-free maturity preserves diversification gains
No storage costs unlike physical gold
Government backing eliminates counterparty risk

Recommended SGBs for Diversification Seekers

#	Symbol	Price	Discount	Yield	Maturity
1	SGBJUN30	₹15,551	0.97%	0.33%	Jun 2030
2	SGBMAR31IV	₹15,800	0.36%	0.22%	Mar 2031
3	SGBDE30III	₹15,768	0.11%	0.15%	Dec 2030

4	████████	₹█,███	█.██%	█.██%	██-███-████
5	████████	₹█,███	█.██%	█.██%	██-███-████
6	████████	₹█,███	█.██%	█.██%	██-███-████

See All 9 SGBs

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Investment Tips for Portfolio Diversification

1Target 5-15% gold allocation based on risk tolerance
2Rebalance annually to maintain target allocation
3Buy more SGB when gold allocation falls below target
4Don't try to time gold - maintain strategic allocation
5Consider gold as insurance, not growth asset
6Use SGB maturity proceeds to rebalance portfolio

Important Warnings

Gold doesn't always provide perfect hedge
Over-allocation to gold can drag portfolio returns
Don't shift to gold just because markets are falling
Past correlations may not hold in future

Calculate Your SGB Returns

Use our calculator to estimate your potential returns based on investment amount and holding period.

Frequently Asked Questions

Most financial planners recommend 5-15% in gold. Conservative investors may go higher (15%), aggressive investors lower (5%). The right amount depends on your risk tolerance and goals.

Historically yes - gold rose during 2008 crisis, COVID crash, and most equity downturns. However, it's not guaranteed. Gold provides partial protection, not complete insurance.

Both work for diversification. SGB is better for tax efficiency and long-term holding. Gold ETF offers better liquidity for rebalancing. Many investors use both.

Use rules-based rebalancing: if gold falls below your target allocation (say 10%), add more. Don't try to predict gold prices - maintain your strategic allocation systematically.

Explore More

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