How good is G-Sec as an investment option
No credit risk is an attraction, but note the nuances
There has been much buzz around investing in Government securities (G-secs) ever since the RBI Governor proposed to allow retail investors to invest in them through the central bank . As of now, you can invest in G-secs via broking firms such as ICICI Securities, HDFC Securities and Zerodha and NSE’s goBID platform.
While direct investing may make it easier , this alone may not be enough to nudge retail investors to jump in.
Not completely risk-free
No risk of default by the Government makes G-secs immune to credit risk. But they are exposed to interest-rate risk, just like other tradeable bonds. When interest rates rise, or expected to rise (fall), G-sec prices can fall (rise) leading to a capital loss (gain).
RBA To Buy Additional A$100 Bln Govt Bonds RBA To Buy Additional A$100 Bln Govt Bonds
The material has been provided by InstaForex Company – www.instaforex.com
Market Summary
Retirement Intelligence
Risk Disclaimer - By using this web site you agree to its terms and conditions.
All materials, including but not limited to articles, directories, photos, lists, etc., on this website are the sole property of ForexTV or the respective copyright holders and are intended for informational/educational purposes using hypothetical and sometimes anecdotal illustrations. The unauthorized use of any and all materials is prohibited and restricted by copyright law. Any use of materials on this site must be approved in advance by ForexTV.