A.
Investing in G-Secs comes with several benefits such as-
Besides earning interests, G-Secs offer maximum investment safety due to the sovereign commitment to principal repayment and interest returns.
Investors can choose G-Secs premised on their maturity periods, ranging from 91 days to as long as 40 years, as per their requirement.
Moreover, G-Secs can be used as collaterals to borrow finance in the repo market.
It is also easy to sell G-Secs in the secondary markets to mitigate any liquidity crisis.
Investors buying Special Securities and State Development Loans (SDLs) enjoy more significant yields.