The Central Government has something called a fiscal deficit. This has to be funded. The market borrowing of the Central Government is met by issuing dated securities (called G Sec) and 364 day Treasury Bills. This is normally done by issue of a slew of G Secs, T bills, by holding auctions. Money is raised […]
Mr. Subra my name is A…K. These are some of the facts about me. Please tell me whether I am on the right track please. Facts: AK is 52 years of age, works in a semi-government company. He has a house in Mumbai (current estimated worth Rs. 85 lakhs, located at Mulund). He drives a […]
Diversification Financial Planner: A diversified portfolio lowers your risk. Reaction should be: Diversification won’t always save you – and you need more of it than you think. Your financial planner has to understand diversification across asset classes, geographies, business houses, industries, time horizons, etc. Not all financial planners are equipped to evaluate and advice on […]
Question: I’m a 56-year-old teacher and my husband recently passed away. I own the home in which I live, but do not have a pension or any investments. All my monies are in public provident funds, national savings certificates, and bank deposits. However, I will receive Rs. 20 lakhs from my husband’s life insurance policy. […]
How safe are government securities? Is this a question bothering you? Welcome. Many people have asked me this question, and I have struggled to explain the answer. Central Government securities are 100% safe. These are what are called ‘Soverign Paper’ and is guaranteed by Pratibha Patil – the Government of India! Interest rate payments, principal, […]