Should Invest in Government Bonds
To boost domestic sovereign bond market participation, the Indian government allows ordinary investors to buy bonds directly. Availability Government bonds are announced before auction. State and federal governments issue these bonds. The State issues State Development Loans, while the Center issues G-Secs or government bonds. Government bonds require a bank account. Demat accounts can hold government bonds. Invested Government bond announcements include bond prices. The RBI of India's preferred app, e-Kuber, makes investing in G-Secs easy. Participate through a government-listed commercial bank or main dealer. That requires a securities account. Stock exchanges sell it. The Bombay Stock Exchange has NCB-GSec, while the NSE of India has NSE go BID. Buy it on brokerage platforms. Govt securities mutual funds are another option. These funds buy government bonds. Payback Most government bonds have set interest rates until maturity. For the bond holding period, you get half-yearly inte...