G-Sec
Full form: Government Securities
InvestmentsGovernment securities are debt instruments issued by Government of India -- zero default risk (sovereign guarantee). Available to retail investors via RBI Retail Direct platform at no brokerage.
In detail
Types: T-bills (91/182/364 days), Government bonds (2-40 years), SDL (state government bonds). Current 10-year G-Sec yield: approximately 7.0-7.2%. Available from Rs 10,000 minimum. Gilt mutual funds also invest in G-Secs.
Formula
Bond price and yield move inverselynIf yield rises 1%: 10-year bond price falls approximately 7-8%
Real-life example
🇮🇳 India example
Anand buys 7.26% GoI 2032 bond via RBI Retail Direct at Rs 1,000. Gets Rs 363/year coupon (Rs 181.5 twice yearly) and Rs 1,000 at maturity. Zero default risk.
Frequently asked questions
How to buy G-Secs as retail investor? ▼
Register at retaildirect.rbi.org.in -- free and instant. Bid in primary auctions or buy on secondary market. Or invest via Gilt mutual funds.