What are the advantages of investing in Government Securities? are there any at all?
Yes. Let us look at some of them:
1. No TDS – immaterial of amount there is no TDS / no witholding tax on the principal. Very useful if you are a big company but have no tax liability because of brought forward losses
2. zero risk of default.
3. extremely liquid – especially in the 10 year paper market
4. Regular income product – twice a year, attractive returns normally
5. Loans available against it / accepted by all for security deposit.
6. Can be held in demat form
7. Frankly only place to invest with a 20 year view – there can be no AAA paper with a 20 year duration!
Post Footer automatically generated by Add Post Footer Plugin for wordpress.