Time's right to buy g-secs with rates near a peak
So, money managers believe conservative investors looking for regular income could lock into some of these bonds, which come in maturities ranging from a decade to as long as half a century.
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So, money managers believe conservative investors looking for regular income could lock into some of these bonds, which come in maturities ranging from a decade to as long as half a century.
India Business News: Conservative investors seeking regular income can now benefit from long-tenure bonds. These bonds, ranging from a decade to half a century, offer high
Look for spikes in bond yields to shift from short-term debt funds to long-term debt funds. If you wish to invest in fixed deposits, prevailing rates are attractive. Do not chase yields as it may indicate higher credit risk.
Government security, or g-secs, come with very little to negligible credit risk. But some g-secs are liquid, mostly the 10-year benchmark. However, long-term government bonds are generally bought by institutional investors, not so much by individual investors. Here’s a look at its prospects.
Experts say the offer is interesting, since there aren’t many secondary market AAA-rated debt issues offering the same returns.