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Government Bonds
What It Is
Think of a government bond like a loan you give to the government.
How It Works
When you buy a government bond, you're lending money to the government. In return, the government promises to pay back the money you lent (the principal) along with some extra money (interest) after a specific time, let's say a few years.
Types of Government Bonds in India
- Dated Government Securities
- Treasury Bills (T-Bills)
- Cash Management Bills
- State Development Loans
How to Invest in Government Bonds in India
- Direct Platform
- Through Stock Broker
- Through Mutual Funds
Advantages of Investing in Government Bonds
- Risk-Free Investment
- Inflation-Adjusted Returns
- High Liquidity
- Portfolio Diversification
- Regular Income Source
- COMMERCE KA LADKA
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