Why invest in G-Secs?
These instruments carry the least risk among debt investment options. Therefore, they tend to be good avenues for the risk-averse investor looking for diversification in their portfolio. Government Securities are considered ideal to manage liquidity in the short term since they are guaranteed by the Government of India.
Advantages of investing in Government Securities
- G-Secs are regarded as extremely risk-free investments. The interest rate set at the start is guaranteed regardless of market performance, natural disasters, political dispensation and so on
- They provide diversification to your portfolio
- Government securities are a crucial component of the economy and offer the government and investors numerous advantages.