What are Government bonds and how to invest in them?
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- Опубліковано 6 вер 2024
- In this video, we take a look at what Government bonds are and how you can invest in them on Kite.
The government has ongoing expenditures to build infrastructure like roads, provide amenities, and undertake other development activities. To fund these activities, the government needs money, apart from the taxes it collects, it also borrows money by issuing bonds. The Reserve Bank of India issues T-Bills and GoI-dated bonds also known as G-Secs and State Development Loans (SDLs) on behalf of the Indian government and state government to raise money by offering a fixed return on investment.
Invest in Government bonds on Kite here: kite.zerodha.c...
Keep track of all upcoming issues of government bonds and sovereign gold bonds on TradingQnA:
Issuance calendar for G-Secs: tradingqna.com...
Issuance calendar for T-Bills: tradingqna.com...
Issuance calendar for SGBs: tradingqna.com...
Issuance calendar for SDLs: tradingqna.com...
Learn the basics of investing in Government bonds:
tradingqna.com...
zerodha.com/va...
Watch this video in Hindi here: • What are Government bo...
It would be great if you can consider elaborating on taxation, tradability, liquidity etc.and also if these can be pledged for margin for trade in F&O, and whether it will be cash equivalant or otherwise ...
gsecs are the best, use it as collateral and sell options to make more gains
thank you for this opportunity
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Hi can you please tell when does coupon come. As in my case it was supposed to come on 23rd may but I still haven't received it yet.
Nice Idea
Tell me one thing, As you said if we invest either T-Bills/G-Secs/SGBs/Sgreenbonds they give yearly consider 6 to 7% interest/yeild as a profit on our investment but as you mentioned most of them are long term so 10% tax applicable on our capital gains. So where i can see profit on it?
If it STCA government charges as per Tax Slab Rate consider if person earning 20L per annum and that person comes into 30% slab so how this person is benifited with this Funds.
Ex: Green Bonds gives 6% annual interest rate per year
If i invest 1 Lakh on it per year interest is 6000 and you are giving this interest as twice in a year it means 3000/-
How do they caluculate on it?
As per my understanding on this 3000/- if they apply 30% (900/- loss ) then i get only 2100/- as interest into my bank account then how i see this is benifited?
Please correct me if anything wrong on this.
You have explained how to bid, but how the price is derived in the open market?
Please explain how and what needs to be considered while trading/investing in open market etc...
Should have included taxation part in the video itself and what is the % written in the column next to the security name column
That % value is yield to maturity
No tax on government bonds
how much is hair cut on pledging any of these? specialy TBILL?
Please do explain on charges from Zerodha on earned amount upon maturity
There are no charges, Pruthviraj. The maturity proceeds are directly credited to your primary bank account.
Hw they are different from FD BRO
Which money debit in this bonds demat account money or bank account money??
Hi Prasad, the funds will be debited from your trading account.
Hi, I have a question. I actually have 2036 May 23 bond and today was the first coupon date. Can you please tell me when the amount would be credited.
Hi, the interest payment will be credited within 15 days of the cupon payment date. This is credited directly to your primary bank account.
Please share a video, on how to sell these gsec bonds
Is there a lock in period or can it be sold as and when as per our convenience
You can sell on exchange but there's low liquidity...so it won't be a smooth experience...also you might have to sell it a little lower
Is there any brokerage amount to buy sgb in zerodha
Major part of india dont understand this level of english. So, if you are really interested in sharing the knowledge get yourself an additional language and little bit elaboration. It will help the nation grow this or that way. Thankyou.
Speak for yourself
So do you.@@nandux586
Can we buy stocks for swing trades by pledging G-Sec ?
Hi, you cannot use collateral margin to buy stocks for delivery, the margin can only be used for Intraday Equity, Trading Futures, and Shorting Options. We've explained it here: support.zerodha.com/category/console/portfolio/articles/what-is-pledging
Thank you
What if somebody want to invest in G-sec for 20 Cr?
Please clarify, If the interest mentioned is 6.8% - is this the annual interest?
If payout happens every 6 months do we get 3.4% twice, or is it 6.8%?
Hi, 6.8% is annual interest. You will get 3.4% every 6 months.
Thank you @@zerodhaonline
great information
Is video ko dekh kar ‘The Big Short’ movie ki yaad aagayi 🤣🤣🤣
Did zerodha stopped providing corporate bonds?
Hi, currently we're not offering corporate bonds. We're working on it.
I don’t understand what is need to have such loud background music in a video meant to explain and teach some concepts. The main purpose is defeated by that, sadly.
And I am sure many senior citizens will not be even able to follow what is being said due to this.
Hope the video makers focus on the important part which is content and not such fancy stuff like loud and catchy background music.
Do I have to add money to zerodha to buy t bill?
Yes, you will have to add funds to your Zerodha account.
Is Secondery market biding to come in near future on kite?
Let's say we buy bonds that cost $1,000 when they were sold, when the price falls to $800. When the maturity date comes, will the company or the country buy this bond from us for $1000? If I understand correctly, if we buy a bond with one year to the maturity date according to the above scenario, will we earn 25% + coupon income in one year? Is such an income really possible?
Hi, yes. When a bond matures, the government or the company issuing the bonds pays back the face value of the bond. To take your example $1000. You can learn more here: zerodha.com/varsity/chapter/government-securities/
First of all thanks for answer.
Some companies' bonds are losing a lot of value. For example, they can fall to $60 or even $10. How can we be sure that these companies will pay the face value of the bonds when the time comes to pay the maturity date? Although not in all company bonds, we see the ratings of rating agencies such as fitch, moody's in some bonds. Do you think it is too risky to buy corporate bonds that are not rated or rated lower than B by rating agencies? @@zerodhaonline
Can i add or sell G bond in open market ....what is the benifit
yep u can
I placed for T-bill, but my bid was rejected sighting insufficient balance, despite having enough balance in my bank account.
Hi Ashish, for investment in Government Securities, you need to keep sufficent balance in your trading account, not the bank account.
@@zerodhaonline You mean Transfer money to zerodha accoumt?
info seems incomplete....u should have given full details...
Can 54EC bonds be bought thru kite
Hi Palvea, you can invest in them through GoldenPi: goldenpi.com/home
Can retailer invest in gsec
Can we sell before maturity date?
in secondary market.. like shares but most times the buyers are less
Will the bid open again after 28th November?
Hi, you can check the issuance calendar. Please check the links in description.
T-bills buy 91 ,182 days collateral available or not
Hi Balaji, currently we only accept 365-day T-Bills for collateral margin. Allowing 91-day and 182-day T-Bills is on our list of things to do.
7.46%GS2073 six month ones interest credit or yearly ones credit
What is the brokerage?
There is no brokerage charged for investing in government bonds.
From where can I get the invoice and details of the bought bonds in zerodha?
First it was showing in the coin but now where can I get the information?
Hi Sagar, you can download the contract note for ordrs of G-Secs on Console: support.zerodha.com/category/console/reports/contract-note/articles/where-can-i-get-the-contract-notes-for-the-trades-i-ve-taken
@@zerodhaonline Ok thanks
Can we widraw money in between
Hi Amit, the bonds are also listed on the exchanges. If you wish to, you can sell them anytime like stocks. However, the liquidity is very low.
New t bills are not allowed for pleding so don't place new bids in zerodha as there is no benefits
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