Why are Government Securities considered good investment choices?
Government Securities are debt instruments issued by a government to raise funds for public spending. These securities, often referred to as bonds or treasury bills, are considered low-risk because they are backed by the government. Investors lend money to the government in exchange for regular interest payments and the return of the principal amount at maturity. Government securities are popular for those seeking stable, reliable returns with minimal risk.
Government Securities offer low risk, stable returns, and tax benefits while providing diversification and liquidity. They’re ideal for conservative investors seeking safety and predictable income.
- Low Risk
- Stable Returns
- Capital Preservation
- Liquidity
- Tax Benefits
- Long-Term Investment
FAQs
Frequently asked questions on Government Securities
Government securities are debt instruments issued by the government to raise funds, offering
low-risk investments with fixed interest and maturity periods.
G-secs offer low risk, regular interest income, tax benefits, and liquidity, as some securities are tradeable in the secondary market.
Yes, G-Secs are tradable in the secondary market. You can sell them before maturity through brokers or online platforms, though prices may fluctuate.
Government securities can be bought through banks, financial institutions, brokers, or online
trading platforms like RBI or NSE portals for direct government investment.
Interest rates vary based on the type and tenure of the security. Typically, they are fixed and
paid periodically, ranging from 4% to 8%.
The minimum investment in G-secs depends on the type of security. Treasury bills often start at ₹10,000, while bonds can start at ₹1,000. The minimum investment in G-secs depends on the type of security. Treasury bills often start at ₹10,000, while bonds can start at ₹1,000.
