Government Securities (G-Secs)
G-sec are backed by Govt. of India and fetch better returns than traditional Fixed Deposits (FDs).
What are Government Securities (G-secs)?
- Investing in Government Securtities can help you diversify your investments and reduce the overall risk of your portfolio
- A G-Sec is a Debt obligation. Investor who buys a G-Sec is actually lending money to the Central or State Government
- When you invest in a G-Sec you get a fixed return on the investment that is practically risk free and better than traditional FDs
- G-Secs with a Maturity of less than 1 Year are called Treasury Bills (T-Bills) and those greater than 1 Year are called Government Bonds
Why G-Secs are a good option for your portfolio
With inveting in G-Secs you get a fixed return on your invesments
G-Secs are backed by the Government of India and practically carry no risk
Diversify your Portfolio
G-Secs can be used as an Alternate investment option to diversify in a practically risk free asset to reduce portfolio risk
Compared to traditional fixed Deposits G-Secs have proved to have better returns
What are Government Securities (G-Secs)?
Government securities are safer as compared to bank FDs and also fetch better returns. It is an instrument that the Central or State Government issues to raise money. G-Sec carries partially no risk and is also practically called a risk-free instrument.
What are T-Bills and Government Bonds?
Central Government issues both Treasury bills or T-Bills (Short term debt instruments with a maturity of less than one year) and Government Bonds (Long term debt instruments with a maturity of one year or more). Whereas the State government only issue bonds, also called SDL (State Development Loans).
Where do I see my bond or T-bill after investing?
Once you have invested in any of the G-Secs through Altius, the bond will be transferred to your DEMAT account and will be visible on the same.
How are G-Secs taxed?
The Taxation on the interest earned will be as per your tax slab, and there is no tax deduction at source as in the case of FDs.
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