Comment on Start investing in G-Secs

Bhuvanesh commented on 22 Oct 2018, 05:58 PM

Hey Nilesh, if you wish to invest for the short-term, then T-bills have maturities of 91 Days, 182 Days and 364 Days. What this means is that, if you buy a 91 Day T-bill at let’s say, Rs.98, it will mature at Rs.100 after 91 days. The Rs.2 will be your return. Bonds are for durations over 1 year. There are various bonds with maturities ranging from 1 to 40 years.

if you buy a bond, you will receive the interest every 6 months to your bank account. The interest rates vary across bonds. I would suggest, you check out this chapter on Varsity: https://zerodha.com/varsity/chapter/government-securities/.

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