What is the difference between gold ETFs and SGBs?

Both Gold ETFs and Sovereign Gold Bonds (SGBs) allow you to gain exposure to gold without holding it in physical form. However, they differ significantly in terms of structure, returns, taxation, and liquidity. Understanding these differences can help you choose the option that best suits your investment goals.

Gold ETFs	Sovereign Gold Bonds
Traded like shares	Issued by RBI
No interest income	Fixed interest income
Capital gains taxable	Capital gains tax-free at maturity
High liquidity	Limited liquidity
Price tracks gold	Tracks gold + interest