Posts

Showing posts from October, 2021

How to Invest in Government Bonds in India

Image
  Government Bonds India  are supposed to be among the  safest investments in India  in which was why they skyrocketed in late 2008 when there was panic in the stock market. In the popular documentary series "The Ascent of Money", Niall Ferguson, a respected British economist and historian, went back into history to the times when  government bonds  have gone bust before and explained the reasons why it happened and the subsequent consequences. He used Argentina as an example. Starting from 1975, the  Indian government had to sell a lot of bonds  to raise money to fund 2 wars. The government debt became so large that people lost faith that the government could pay the debt back and nobody wanted to  buy the government bonds , causing the bond yield (interest) to be very high. In order to be able to service the interest payment, the government had to keep printing more money and that caused hyper inflation. By December 2001, the government finally defaulted on their  bonds . I

How to Invest in Government Bonds in India

Image
Government Bonds India  are supposed to be among the  safest investments in India  in which was why they skyrocketed in late 2008 when there was panic in the stock market. In the popular documentary series "The Ascent of Money", Niall Ferguson, a respected British economist and historian, went back into history to the times when  government bonds  have gone bust before and explained the reasons why it happened and the subsequent consequences. He used Argentina as an example. Starting from 1975, the  Indian government had to sell a lot of bonds  to raise money to fund 2 wars. The government debt became so large that people lost faith that the government could pay the debt back and nobody wanted to  buy the government bonds , causing the bond yield (interest) to be very high. In order to be able to service the interest payment, the government had to keep printing more money and that caused hyper inflation. By December 2001, the government finally defaulted on their  bonds . I r

How to buy government bonds in India

Image
Government Bonds India  are supposed to be among the  safest investments in India  in which was why they skyrocketed in late 2008 when there was panic in the stock market.  In the popular documentary series "The Ascent of Money", Niall Ferguson, a respected British economist and historian, went back into history to the times when  government bonds  have gone bust before and explained the reasons why it happened and the subsequent consequences.  He used Argentina as an example. Starting from 1975, the Indian government had to sell a lot of bonds to raise money to fund 2 wars. The government debt became so large that people lost faith that the government could pay the debt back and nobody wanted to  buy the government bonds , causing the bond yield (interest) to be very high. In order to be able to service the interest payment, the government had to keep printing more money and that caused hyper inflation. By December 2001, the government finally defaulted on their  bonds . I r

Benefits of Investing in Government Bonds in India

Image
  Before knowing the benefits of Invest in Government Bonds, we will see What is Government Bonds India and how do government bonds work in India. A government bonds is a financial security used by the government of the country to mainly regulate the volume of circulating cash in the economy. Investing in government bonds is much more secure than doing the same in the stock market, because you can be almost certain that u will be able to redeem it. In case of any cash crunch faced by the government, it can always print new cash to pay off the debts. However, one can never be sure to regain his invested capital, because like any other investment risk, bonds prices can fluctuate as well. The primary issuers of bonds are by the Government Security of India (G-Sec) governments of Japan (JGBs), America's U.S. Treasuries, Italy's BTPs, France (OATS), the Bonds of Germany and the Gilts of England. The latter is the oldest issuer of bonds, starting in 1693 with the purpose of colle

How to Invest in Government Bonds in India

Image
Let us see how do government bonds work in India and how to Invest in government bonds in India.  Government Bonds India   are supposed to be among the   safest investments in India   in which was why they skyrocketed in late 2008 when there was panic in the stock market.  In the popular documentary series "The Ascent of Money", Niall Ferguson, a respected British economist and historian, went back into history to the times when   government bonds   have gone bust before and explained the reasons why it happened and the subsequent consequences. Know  when is the best time to buy government bonds.  He used Argentina as an example. Starting from 1975, the  Indian government had to sell a lot of bonds  to raise money to fund 2 wars. The government debt became so large that people lost faith that the government could pay the debt back and nobody wanted to   buy the government bonds , causing the bond yield (interest) to be very high. In order to be able to service the interest pa

How to invest in RBI bonds in India

  ​The  bonds India  markets reacted positively at RBI's Annual Policy for Fiscal Year 2010-11.  The RBI's calibrated approach in exiting accommodative measures announced during the crisis period of 2008 and early 2009 was welcomed by traders as RBI announced 25 bps hike each in CRR, Repo Rate and Reverse Repo Rate, lower than the market expectations of 50bps.  The RBI seemed more concerned on Inflation front and accordingly shifted its actions to inflation-led, thus, giving a balanced approach to Growth-Inflation dynamics. However, the  Bonds  markets could not cheer for the later part of the week and yields moved northwards across the curve in the following days.  High Inflation pressure, large week-on-week gilts supply including overseas cues such as US Treasury Yields and Crude Oil Prices has continued to weigh on the gilt prices. However, the better-than-expected 3G auction sentiments (The government hopes to collect Rs. 50,000 crore than its expectation of Rs. 35,000 cror

How to buy RBI bonds in India

  RBI Bonds in India  announced policy rate hikes; Repo, Reverse Repo and CRR hiked to 5.25 per cent, 3.75 per cent and 6 per cent respectively, up by 25 bps. •  Invest in RBI Bonds  RBI followed "baby steps" instead of "big leap" as a part of unwinding accommodative measures • RBI's M3 growth, Deposit Growth and Credit off-take projected at 17 per cent, 18 per cent and 20 per cent respectively for Fiscal Year 2010-11 • CRR hike of 25 bps drained out Rs. 12,500 crore from the system; liquidity still abundant with weekly average of above Rs. 48,000 crore •  Bond Markets in India  reacted positively to RBI announcements; Yields moved down. Benchmark G-Sec 6.35% 2020 settled at 8.06 per cent or Rs. 88.64; Introduction of new security G-Sec 8.20% 2022 •  Buy Bonds Online in India  remained buoyant throughout the week following the RBI's announcement of policy rate hikes. • Inflationary pressures (food including non-food) and overseas cues such as US Treasury Yie

How to invest in Tax Free Bonds

Image
What is Tax Free Bonds India?  Why to invest in bonds in India and how can you invest in Tax Free Bonds in India ? A tax-free bond invests in municipal bonds. It is a debt security issued by the state or local government. They pose as good investments since they don't attract tax.  They also attract very high interest on their value. How you can invest in tax free bonds India is based on a number of factors; most important of all, your knowledge about these bonds. There are two attractive tax-free bonds India in the market namely; the general obligation and revenue bonds.  General obligation bonds are state securities meant for raising money for projects like community development, schools, sewers etc. The General Obligation investment in tax free bond is considered as safer in comparison to the Revenue Bond.  On the other hand, the Government Bonds is issued by a state or local government company. Both are available in the market. The interest on your investment comes from t