This particular question has generated lot of curiosity among investors and the reason behind is quite obvious. If we see some of the most trendiest keywords on the Google platform then, in personal finance category ‘Government Bond’ is one of those terminologies which has generated relatively good hike.
What is Government Bond?
Let’s understand the same in a simple way, when government requires cash to complete the infrastructure or national development projects, it offers this debt instrument to general public for the approximate period of five to forty years. In India, it is issued by central and state government.
Bonds issued by state governments are termed as ‘SDL’ (State Development Loan). It is a debt instrument where government (an issuer) promises the investor to certain rate of return (7% on fixed rate bonds) at the maturity period on the face value of the bond.
Bonds issued by Government of India:
There are mainly two types of government bonds at present with different characteristics.
After Pandemic, many investors have realized to have safe investment options with reasonably better rate of interest. Fixed deposit has been still on the top chart for traditional Indian investors but, it only gives 4%-6.5% rate of interest depending upon the bank. Thus, investors are searching for the safe and better investment schemes.
As far as safety is concerned, Government Bonds are safer than most of the market based securities or products. Equity, mutual funds, insurance and debts, all have direct effect from the market fluctuations. But government bonds are almost free from market volatility.
From now, try to understand the safe sides that these bonds offer to the investors at large if they wait till the maturity.
What are some of Advantages of Government Bond?
What are some of disadvantages of Government Bond?
Bond Yield Data (Historic) Past 10 Years / Daily Base sample. | |||||
Date | Price | High | Open | Low | Variation (%) |
3-Mar-22 | 6.827 | 6.856 | 6.856 | 6.823 | 0.19% |
2-Mar-22 | 6.814 | 6.817 | 6.799 | 6.797 | 0.65% |
28-Feb-22 | 6.77 | 6.777 | 6.777 | 6.749 | 0.31% |
25-Feb-22 | 6.749 | 6.77 | 6.77 | 6.738 | -0.15% |
24-Feb-22 | 6.759 | 6.784 | 6.777 | 6.749 | 0.30% |
23-Feb-22 | 6.739 | 6.792 | 6.792 | 6.739 | -0.15% |
22-Feb-22 | 6.749 | 6.783 | 6.783 | 6.723 | 0.84% |
21-Feb-22 | 6.693 | 6.699 | 6.681 | 6.667 | 0.45% |
18-Feb-22 | 6.663 | 6.686 | 6.686 | 6.656 | -0.16% |
17-Feb-22 | 6.674 | 6.714 | 6.714 | 6.667 | -0.18% |
16-Feb-22 | 6.686 | 6.707 | 6.707 | 6.656 | 0.19% |
15-Feb-22 | 6.673 | 6.697 | 6.664 | 6.615 | 0.09% |
14-Feb-22 | 6.667 | 6.726 | 6.725 | 6.66 | -0.46% |
11-Feb-22 | 6.698 | 6.776 | 6.763 | 6.698 | -0.40% |
10-Feb-22 | 6.725 | 6.818 | 6.818 | 6.688 | -1.07% |
9-Feb-22 | 6.798 | 6.823 | 6.817 | 6.784 | -0.18% |
8-Feb-22 | 6.81 | 6.861 | 6.861 | 6.804 | -1.00% |
4-Feb-22 | 6.879 | 6.955 | 6.955 | 6.869 | -0.15% |
3-Feb-22 | 6.889 | 6.891 | 6.891 | 6.859 | 0.13% |
Lowest: 6.615 | Highest: 6.955 | Average: 6.751 | Change %: -0.770 | Difference: 0.340 | |
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Should you invest in Government Bonds?
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