INVESTMENT PLANNING: Plan your Investment in 2021: 5 must-haves for new investors indiatimes.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from indiatimes.com Daily Mail and Mail on Sunday newspapers.
Updated Feb 16, 2021 | 08:26 IST
The RBI has recently allowed direct access in G-secs to retail investors. However, more operational clarity will emerge in the days to come. Investing in government securities: Do they suit your financial goals?
Government Securities (G-Secs) are one of the safest investing instruments available in the market. They are issued and backed by the central or state governments. So, they don t carry any default risk. This sovereign guarantee makes G-secs highly attractive for risk-averse investors. But because of the low risks, government securities offer low returns.
Earlier, retail investors were not allowed to participate directly to invest in the G-secs market and couldn’t open a gilt account which is used to hold the G-secs. However, Reserve Bank of India Governor Shaktikanta Das announced on February 5 that the government will permit retail investors to access the G-secs directly through a dedicated portal named ‘
What you need to be wary of before opening your demat account
There are various investment tools that can help in starting the financial journey. That said, you should have a fair knowledge about the financial markets before investing. February 04, 2021 / 11:21 AM IST
Financial planning is one of the top priorities on everyone’s to-do list. We want to create sufficient wealth for our short-term goals such as travelling, buying a car, and long-term goals that include buying a house, higher education, and post-retirement life. To build a corpus for these milestones, we put ourselves under a tight budget and automate our monthly salaries into a savings account.
Will retail investors take up RBI s offer to open gilt accounts?
Currently, there exists a window for retail investors where they can place their buy and sell orders through intermediaries, but participation remains low
Niti Kiran | February 6, 2021 | Updated 01:16 IST
Retail investors shall be allowed to open gilt accounts with the Reserve Bank of India. The central bank has proposed to provide retail investors with online access to the government securities market - both primary and secondary - directly through the Retail Direct platform. The details have not yet been specified, though. This will broaden the investor base and provide retail investors with enhanced access to participate in the government securities market. This is a major structural reform placing India among select few countries which have similar facilities, RBI Governor Shaktikanta Das said while announcing the monetary policy on Friday.