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What are the advantages of investing in Government Securities (G-Secs)?

April 26, 2017advantages G-Secs government Investing securities

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What are the advantages of investing in Government Securities (G-Secs)?

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The Zero Default Risk is the greatest attraction for investments in G-secs so that it enjoys the greatest amount of security possible.

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The Zero Default Risk of the G-Secs. offer one of the best reasons for investments in G-secs so that it enjoys the greatest amount of security possible. The other advantages of investing in G- Secs are: • Greater safety and lower volatility as compared to other financial instruments. • Variations possible in the structure of instruments like Index linked Bonds, STRIPS • Higher leverage available in case of borrowings against G-Secs. • No TDS on interest payments • Tax exemption for interest earned on G-Secs. up to Rs.3000/- over and above the limit of Rs.12000/- under Section 80L (as amended in the latest Budget).