Government bonds are one of the safest investment avenues in India. Issued by the Central government and supervised by the Reserve Bank of India, this investment instrument involves minimal capital loss risk. State governments can issue such bonds, which are also known as State Development Loans (SDLs). These bonds are primarily issued for financing infrastructure development projects and to plug revenue gaps.
When considering how to buy government bonds in India, prospective investors must be familiar with a few associated formalities and aspects of this investment tool to optimise their benefits. The sections discussed below elaborates on these.
For investors wondering how to buy government bonds, read the steps mentioned below for detailed information –
Until November 2017, small investors and individuals could not buy Government Securities such as bonds and T-bills. Only entities like insurance companies, banks, trusts, mutual funds, and corporates could access the G-sec market. But after RBI’s announcement of ‘Non-competitive Bidding Facility,’ G-Secs are now easily available for all.
To know more about how to buy government bonds, individuals can use the NSE goBID app with a minimum value of Rs.10,000.
Government bonds assure maximum financial security along with generating a regular source of income. People who fall in the maximum tax bracket can opt for government bonds, which is a highly profitable option. Investors can also consider investing in corporate bonds via KredX. Other alternatives like PMS and digital gold are also available on our platform.
Investing in G-Secs comes with several benefits such as-