Sovereign Gold Bonds are guaranteed by the Indian Government and held in Demat form

No commission or management fee or expense ratio charges

Investment return are higher in SGB compared to Gold mutual funds or Gold ETF

Gain exempted if held till maturity (8 years)

SGB can be pledged and can get a Margin benefit for trading, it is usually considered a cash component. Some Banks accept SGB as collateral/security against loans pledged in Demat form.