SGB issued in Feb 2017 has given 193% return in 8 years. How does that compare with FDs and equity mutual funds?

The Feb 2017 SGB showcased a fantastic return on maturity compared to other investment avenues like fixed deposits and some equity mutual funds.

SGB issued in Feb 2017 has given 193% return in 8 years. How does that compare with FDs and equity mutual funds?


Posted on 16 Mar 2025
Author: Sayan Sircar
Tags: Tags Gold
31 mins read
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The Feb 2017 SGB showcased a fantastic return on maturity compared to other investment avenues like fixed deposits and some equity mutual funds.

SGB issued in Feb 2017 has given 193% return in 8 years. How does that compare with FDs and equity mutual funds?

This article is a part of our detailed article series on the new issues of Sovereign Gold Bond (SGB) and well as maturity of existing SGBs. Ensure you have read the other parts here:

📚 Table of Contents

Which SGB series are we discussing here?

SGB 2016-17 Series IV SGBMAR25 Maturity Press Release

This is the SGB that was issued in Feb 2017 at a price of ₹2,943 per gram.

Related:
Sovereign Gold Bond (SGB): complete issue price history in India

Series 2016-17 Series IV SGBMAR25
Issue date 23-Feb-2017
Issue Price ₹2,943
Interest 2.50%
Maturity date 17-Mar-2025
Maturity price ₹8,624 (tax free)
Headline return % 193%
Gold price return 14.38%
Rupee fall vs USD 30.31%
Total interest received ₹589 (taxable at slab)
XIRR (no tax on interest) 15.97%
XIRR (30% tax on interest) 15.45%

The SGB has given a return higher than the gold price due to the interest paid every six months.

Related:
Frequently asked questions on Sovereign Gold Bonds (SGB): the complete guide

How much return did this SGB give?

If you had bought and held this SGB until maturity, then this is the return you would have got based on the amounts you paid, the intermediate interest you got and the final maturity value:

Date Description No tax 10% tax 20% tax 30% tax
Feb-17 Investment -2,943 -2,943 -2,943 -2,943
Aug-17 6-m interest 36.79 33.11 29.43 25.75
Feb-18 6-m interest 36.79 33.11 29.43 25.75
Aug-18 6-m interest 36.79 33.11 29.43 25.75
Feb-19 6-m interest 36.79 33.11 29.43 25.75
Aug-19 6-m interest 36.79 33.11 29.43 25.75
Feb-20 6-m interest 36.79 33.11 29.43 25.75
Aug-20 6-m interest 36.79 33.11 29.43 25.75
Feb-21 6-m interest 36.79 33.11 29.43 25.75
Aug-21 6-m interest 36.79 33.11 29.43 25.75
Feb-22 6-m interest 36.79 33.11 29.43 25.75
Aug-22 6-m interest 36.79 33.11 29.43 25.75
Feb-23 6-m interest 36.79 33.11 29.43 25.75
Aug-23 6-m interest 36.79 33.11 29.43 25.75
Feb-24 6-m interest 36.79 33.11 29.43 25.75
Aug-24 6-m interest 36.79 33.11 29.43 25.75
Mar-25 Maturity 8,660.79 8,657.11 8,653.43 8,649.75
17-Mar-25 XIRR 15.97% 15.79% 15.62% 15.45%

It is important to note that to get the return in the table above, which is a calculation similar to that of Yield To Maturity or YTM of a bond, the intermediate 6-monthly interest payments must be also invested in SGB, if needed from the secondary market: How to buy SGB from the stock market?.

Simply adding the gold price return with the interest rate will not give the return of the SGB since the interest also has to compound at the same rate.

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Comparing this 2016-17 Series IV SGBMAR25 return with other investments

We all know that SGB gives the highest returns out of all types of gold investment: The Ultimate Guide to Which Type of Gold Gives the Best Returns.

We can see that the SGB has given a return higher than the gold price movement (14.38%) over 8 years due to the interest it pays out.

Please note that the rupee depreciation against the US Dollar, since most of our gold is imported, reduces the headline 193% return by 30.31% or the yearly return to a more pedestrian 10.66%.

We will now compare this SGB return to other asset classes starting with FD.

Start Building Wealth with Expertly Curated Mutual Fund Packages

Comparing this 2016-17 Series IV SGBMAR25 return with fixed deposit

SBI was giving 5-10 year FDs offering a modest 7% for non-senior citizens which would have course give a return much lower due to tax. Other banks would have given higher returns but their risk would have been higher as well though all banks are covered under DICGC insurance.

Investment No tax 10% tax 20% tax 30% tax
SGB 15.97% 15.79% 15.62% 15.45%
FD 7.00% 6.30% 5.60% 4.90%

To understand if you should invest in SGBs:

Comparing with mutual funds

If we look at the universe of all equity mutual funds, and exclude thematic and sectoral funds from it, there were 153 funds at the time of issuance of this SGB which are still active today. The outperformance vs. mutual funds is due to the correction in stock markets since September 2024.

If we consider the 30% post-tax return case, the following 118 funds have been beaten by the SGB.

Fund Return pre-tax Return after-tax
PGIM India Large Cap Fund 2.78% 2.52%
Taurus Flexi Cap Fund 9.50% 8.77%
LIC MF Flexi Cap Fund 9.97% 9.22%
HDFC Long Term Advantage Plan 10.07% 9.32%
Taurus Large Cap Fund 10.10% 9.34%
Nippon India Tax Saver Fund 10.51% 9.73%
Aditya Birla Sun Life ELSS Tax Saver Fund 10.97% 10.17%
Aditya Birla Sun Life Equity Advantage Fund 11.10% 10.29%
Franklin India Bluechip Fund 11.50% 10.67%
Aditya Birla Sun Life Small Cap Fund 11.56% 10.73%
PGIM India Large Cap Fund 11.87% 11.02%
Navi ELSS Tax Saver Fund 11.91% 11.06%
BANDHAN Flexi Cap Fund 11.91% 11.06%
LIC MF Large Cap Fund 11.98% 11.13%
Quantum ELSS Tax Saver Fund 12.03% 11.17%
ICICI Prudential Nifty Next 50 Index Fund 12.12% 11.25%
Groww Largecap Fund 12.13% 11.26%
Franklin India Equity Advantage Fund 12.21% 11.35%
JM Large Cap Fund 12.58% 11.70%
DSP Top 100 Equity Fund 12.59% 11.71%
Franklin India INDEX FUND NSE NIFTY 50 INDEX FUND 12.83% 11.93%
Aditya Birla Sun Life Nifty 50 Index Fund 12.85% 11.95%
HSBC Large Cap Fund 12.86% 11.97%
LIC MF Nifty 50 Index Fund 12.87% 11.97%
Taurus Nifty 50 Index Fund 12.89% 11.99%
Aditya Birla Sun Life Frontline Equity Fund 12.90% 12.00%
Motilal Oswal Flexi cap Fund 12.96% 12.06%
UTI ELSS Tax Saver Fund 13.01% 12.10%
SBI Flexicap Fund 13.03% 12.12%
HSBC Flexi Cap Fund 13.03% 12.12%
UTI Large Cap Fund 13.05% 12.14%
SBI NIFTY INDEX FUND 13.09% 12.18%
ICICI Prudential Nifty 50 Index Fund 13.10% 12.19%
LIC MF BSE Sensex Index Fund 13.13% 12.22%
Nippon India Index Fund 13.17% 12.25%
Tata Nifty 50 Index Fund 13.17% 12.25%
HDFC Nifty 50 Index Fund 13.19% 12.28%
Mahindra Manulife ELSS Tax Saver Fund 13.21% 12.29%
UTI Nifty 50 Index Fund 13.25% 12.33%
SBI BLUE CHIP FUND 13.28% 12.36%
Tata S&P BSE Sensex Index Fund 13.34% 12.42%
BANDHAN Nifty 50 Index Fund 13.35% 12.42%
Tata Large Cap Fund 13.36% 12.43%
Nippon India Vision Fund 13.38% 12.46%
HSBC Tax Saver Equity Fund 13.41% 12.48%
UTI Flexi Cap Fund 13.42% 12.49%
Aditya Birla Sun Life Midcap Fund 13.42% 12.49%
HDFC BSE Sensex Index Fund 13.45% 12.52%
Nippon India Index Fund 13.47% 12.54%
Nippon India Index Fund 13.47% 12.54%
BANK OF INDIA Large & Mid Cap Equity Fund 13.51% 12.58%
Aditya Birla Sun Life Flexi Cap Fund 13.51% 12.58%
HDFC Large Cap Fund 13.53% 12.60%
Edelweiss ELSS Tax Saver Fund 13.54% 12.60%
BANK OF INDIA Large & Mid Cap Equity Fund 13.56% 12.62%
Axis ELSS Tax Saver Fund 13.63% 12.69%
Mirae Asset Large Cap Fund 13.64% 12.70%
BANDHAN Large Cap Fund 13.68% 12.74%
Navi Large & Midcap Fund 13.75% 12.81%
ICICI Prudential ELSS Tax Saver Fund 13.80% 12.86%
Sunda 13.84% 12.89%
DSP Midcap Fund 13.86% 12.92%
Kotak Flexicap Fund 13.89% 12.94%
Union ELSS Tax Saver Fund 14.15% 13.19%
LIC MF ELSS Tax Saver 14.20% 13.24%
Kotak Bluechip Fund 14.20% 13.24%
HDFC ELSS Tax saver 14.21% 13.25%
Taurus ELSS Tax Saver Fund 14.27% 13.31%
Franklin India ELSS Tax Saver Fund 14.29% 13.32%
Invesco India Largecap Fund 14.43% 13.45%
Union Flexi Cap Fund 14.43% 13.46%
Taurus Mid Cap Fund 14.46% 13.49%
Axis Bluechip Fund 14.57% 13.59%
UTI Mid Cap Fund 14.69% 13.71%
PGIM India ELSS Tax Saver Fund 14.70% 13.71%
Tata Large & MId Cap Fund 14.87% 13.88%
UTI Large & Mid Cap Fund 14.87% 13.88%
Edelweiss Large Cap Fund 14.91% 13.91%
Invesco India ELSS Tax Saver Fund 14.93% 13.94%
Franklin India Flexi Cap Fund 14.93% 13.94%
Tata ELSS Tax Saver Fund 14.96% 13.97%
ICICI Prudential Bluechip Fund 15.00% 14.00%
quant Large & Mid Cap Fund 15.06% 14.06%
Kotak ELSS Tax Saver Fund 15.10% 14.10%
Franklin India Prima Fund 15.13% 14.13%
DSP Flexi Cap Fund 15.24% 14.23%
ICICI Prudential Multicap Fund 15.30% 14.29%
ICICI Prudential MidCap Fund 15.41% 14.39%
DSP Small Cap Fund 15.41% 14.40%
Invesco India Multicap Fund 15.41% 14.40%
Baroda BNP Paribas MULTI CAP FUND 15.49% 14.47%
HDFC Large and Mid Cap Fund 15.52% 14.50%
SBI Magnum MIDCAP FUND 15.53% 14.51%
LIC MF Large & Mid Cap Fund 15.59% 14.57%
Nippon India Large Cap Fund 15.59% 14.57%
CANARA ROBECO FLEXICAP FUND 15.66% 14.63%
Franklin India Smaller Companies Fund 15.66% 14.63%
DSP Equity Opportunities Fund 15.67% 14.64%
PGIM India Flexi Cap Fund 15.75% 14.72%
SBI LARGE & MIDCAP FUND 15.84% 14.81%
CANARA ROBECO BLUE CHIP EQUITY FUND 15.85% 14.81%
BANK OF INDIA MID & SMALL CAP EQUITY & DEBT FUND 15.88% 14.85%
Kotak Equity Opportunities Fund 16.01% 14.97%
quant Large & Mid Cap Fund 16.14% 15.09%
ICICI Prudential Large & Mid Cap Fund 16.14% 15.10%
Motilal Oswal ELSS Tax Saver Fund 16.15% 15.10%
Union Small Cap Fund 16.21% 15.17%
CANARA ROBECO EMERGING EQUITIES 16.34% 15.28%
SBI LONG TERM EQUITY FUND 16.41% 15.35%
BANDHAN ELSS Tax Saver Fund 16.48% 15.42%
CANARA ROBECO ELSS TAX SAVER 16.49% 15.43%
DSP ELSS Tax Saver Fund 16.50% 15.44%

If we assume zero tax in both cases, then the following 127 funds have been beaten by the SGB.

Fund Return pre-tax Return after-tax
PGIM India Large Cap Fund 2.78% 2.52%
Taurus Flexi Cap Fund 9.50% 8.77%
LIC MF Flexi Cap Fund 9.97% 9.22%
HDFC Long Term Advantage Plan 10.07% 9.32%
Taurus Large Cap Fund 10.10% 9.34%
Nippon India Tax Saver Fund 10.51% 9.73%
Aditya Birla Sun Life ELSS Tax Saver Fund 10.97% 10.17%
Aditya Birla Sun Life Equity Advantage Fund 11.10% 10.29%
Franklin India Bluechip Fund 11.50% 10.67%
Aditya Birla Sun Life Small Cap Fund 11.56% 10.73%
PGIM India Large Cap Fund 11.87% 11.02%
Navi ELSS Tax Saver Fund 11.91% 11.06%
BANDHAN Flexi Cap Fund 11.91% 11.06%
LIC MF Large Cap Fund 11.98% 11.13%
Quantum ELSS Tax Saver Fund 12.03% 11.17%
ICICI Prudential Nifty Next 50 Index Fund 12.12% 11.25%
Groww Largecap Fund 12.13% 11.26%
Franklin India Equity Advantage Fund 12.21% 11.35%
JM Large Cap Fund 12.58% 11.70%
DSP Top 100 Equity Fund 12.59% 11.71%
Franklin India INDEX FUND NSE NIFTY 50 INDEX FUND 12.83% 11.93%
Aditya Birla Sun Life Nifty 50 Index Fund 12.85% 11.95%
HSBC Large Cap Fund 12.86% 11.97%
LIC MF Nifty 50 Index Fund 12.87% 11.97%
Taurus Nifty 50 Index Fund 12.89% 11.99%
Aditya Birla Sun Life Frontline Equity Fund 12.90% 12.00%
Motilal Oswal Flexi cap Fund 12.96% 12.06%
UTI ELSS Tax Saver Fund 13.01% 12.10%
SBI Flexicap Fund 13.03% 12.12%
HSBC Flexi Cap Fund 13.03% 12.12%
UTI Large Cap Fund 13.05% 12.14%
SBI NIFTY INDEX FUND 13.09% 12.18%
ICICI Prudential Nifty 50 Index Fund 13.10% 12.19%
LIC MF BSE Sensex Index Fund 13.13% 12.22%
Nippon India Index Fund 13.17% 12.25%
Nippon India Index Fund 13.17% 12.25%
Tata Nifty 50 Index Fund 13.17% 12.25%
HDFC Nifty 50 Index Fund 13.19% 12.28%
Mahindra Manulife ELSS Tax Saver Fund 13.21% 12.29%
UTI Nifty 50 Index Fund 13.25% 12.33%
SBI BLUE CHIP FUND-DIRECT PLAN 13.28% 12.36%
Tata S&P BSE Sensex Index Fund 13.34% 12.42%
BANDHAN Nifty 50 Index Fund 13.35% 12.42%
Tata Large Cap Fund 13.36% 12.43%
Nippon India Vision Fund 13.38% 12.46%
Nippon India Vision Fund 13.38% 12.46%
HSBC Tax Saver Equity Fund 13.41% 12.48%
UTIFlexi Cap Fund 13.42% 12.49%
Aditya Birla Sun Life Midcap Fund 13.42% 12.49%
HDFC BSE Sensex Index Fund 13.45% 12.52%
Nippon India Index Fund 13.47% 12.54%
Nippon India Index Fund 13.47% 12.54%
BANK OF INDIA Large & Mid Cap Equity Fund 13.51% 12.58%
Aditya Birla Sun Life Flexi Cap Fund 13.51% 12.58%
HDFC Large Cap Fund 13.53% 12.60%
Edelweiss ELSS Tax Saver Fund 13.54% 12.60%
BANK OF INDIA Large & Mid Cap Equity Fund 13.56% 12.62%
Axis ELSS Tax Saver Fund 13.63% 12.69%
Mirae Asset Large Cap Fund 13.64% 12.70%
BANDHAN Large Cap Fund 13.68% 12.74%
Navi Large & Midcap Fund 13.75% 12.81%
ICICI Prudential ELSS Tax Saver Fund 13.80% 12.86%
DSP Midcap Fund 13.86% 12.92%
Kotak Flexicap Fund 13.89% 12.94%
Union ELSS Tax Saver Fund 14.15% 13.19%
LIC MF ELSS Tax Saver 14.20% 13.24%
Kotak Bluechip Fund 14.20% 13.24%
HDFC ELSS Tax saver 14.21% 13.25%
Taurus ELSS Tax Saver Fund 14.27% 13.31%
Franklin India ELSS Tax Saver Fund 14.29% 13.32%
Invesco India Largecap Fund 14.43% 13.45%
Union Flexi Cap Fund 14.43% 13.46%
Taurus Mid Cap Fund 14.46% 13.49%
Axis Bluechip Fund 14.57% 13.59%
UTI Mid Cap Fund 14.69% 13.71%
PGIM India ELSS Tax Saver Fund 14.70% 13.71%
Tata Large & MId Cap Fund 14.87% 13.88%
UTI Large & Mid Cap Fund 14.87% 13.88%
Edelweiss Large Cap Fund 14.91% 13.91%
Invesco India ELSS Tax Saver Fund 14.93% 13.94%
Franklin India Flexi Cap Fund 14.93% 13.94%
Tata ELSS Tax Saver Fund 14.96% 13.97%
ICICI Prudential Bluechip Fund 15.00% 14.00%
quant Large & Mid Cap Fund 15.06% 14.06%
Kotak ELSS Tax Saver Fund 15.10% 14.10%
Franklin India Prima Fund 15.13% 14.13%
DSP Flexi Cap Fund 15.24% 14.23%
ICICI Prudential Multicap Fund 15.30% 14.29%
ICICI Prudential MidCap Fund 15.41% 14.39%
DSP Small Cap Fund 15.41% 14.40%
Invesco India Multicap Fund 15.41% 14.40%
Baroda BNP Paribas MULTI CAP FUND 15.49% 14.47%
HDFC Large and Mid Cap Fund 15.52% 14.50%
SBI Magnum MIDCAP FUND 15.53% 14.51%
LIC MF Large & Mid Cap Fund 15.59% 14.57%
Nippon India Large Cap Fund 15.59% 14.57%
CANARA ROBECO FLEXICAP FUND 15.66% 14.63%
Franklin India Smaller Companies Fund 15.66% 14.63%
DSP Equity Opportunities Fund 15.67% 14.64%
PGIM India Flexi Cap Fund 15.75% 14.72%
SBI LARGE & MIDCAP FUND 15.84% 14.81%
CANARA ROBECO BLUE CHIP EQUITY FUND 15.85% 14.81%
BANK OF INDIA MID & SMALL CAP EQUITY & DEBT FUND 15.88% 14.85%
Kotak Equity Opportunities Fund 16.01% 14.97%
quant Large & Mid Cap Fund 16.14% 15.09%
ICICI Prudential Large & Mid Cap Fund 16.14% 15.10%
Motilal Oswal ELSS Tax Saver Fund 16.15% 15.10%
Union Small Cap Fund 16.21% 15.17%
CANARA ROBECO EMERGING EQUITIES 16.34% 15.28%
SBI LONG TERM EQUITY FUND 16.41% 15.35%
BANDHAN ELSS Tax Saver Fund 16.48% 15.42%
CANARA ROBECO ELSS TAX SAVER 16.49% 15.43%
DSP ELSS Tax Saver Fund 16.50% 15.44%
BANDHAN Core Equity Fund 16.53% 15.47%
Mirae Asset Large & Midcap Fund 16.55% 15.49%
Edelweiss Flexi Cap Fund 16.57% 15.50%
JM ELSS Tax Saver Fund 16.63% 15.57%
Edelweiss Large & Mid Cap Fund 16.67% 15.60%
ICICI Prudential Smallcap Fund 16.82% 15.75%
Invesco India Large & Mid Cap Fund 16.94% 15.86%
Tata Mid Cap Fund 16.98% 15.90%
HDFC Flexi Cap Fund 17.03% 15.95%

Note: All of these are direct plans and regular plan returns would have been obviously worse: Do not make this mistake when investing in mutual funds.

Readers should understand that this comparison of two different asset classes should be done not on this point-to-point fashion but using rolling returns only: What are rolling returns in case of mutual funds? Why is this better than point-to-point returns?

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This post titled SGB issued in Feb 2017 has given 193% return in 8 years. How does that compare with FDs and equity mutual funds? first appeared on 16 Mar 2025 at https://arthgyaan.com


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