[timuseravan]

Originally Posted by swapnil.awate

If liquidity is not a requirement, then isn’t a PPF better option than Government bonds?

PPF is indeed a better option if liquidity is not a requirement. However the amount you can invest is limited to ₹1.5 lakh per year.

[locusjag]

Originally Posted by timuseravan

PPF is indeed a better option if liquidity is not a requirement. However the amount you can invest is limited to ₹1.5 lakh per year.

A couple of thoughts:
1) Have another PPF account opened in the name of the spouse, if income permits and if one wishes to pump in more money safely into such an investment
2) Keep extending the PPF's term beyond 15 years by continuing to invest, in 5 year blocks. You can choose to also not withdraw the accrued amount beyond 15 years; it will continue to earn interest...The real power of compounding only kicks in later in the investment period.
3) A smaller thought - make sure you pump in the maximum money right at the start of each financial year preferably. And - it's no use depositing money for a particular month if it is done so after the 5th of the month. Interest is earned for a month only if deposited on or before the 5th of the month.

[Sumeru97]

You can contribute up to 100% of your basic salary to Voluntary PF (VPF) . Its a fantastic option to save for retirement.

I am surprised no one has mentioned about investing in arbitrage funds. They have been giving a consistent return of 6 - 6.5% over many years and are taxed just like equity. I usually put the rest of my monthly savings after PF, VPF and NPS contributions, into a couple of these funds.

[speedfreak01]

Originally Posted by timuseravan

PPF is indeed a better option if liquidity is not a requirement. However the amount you can invest is limited to ₹1.5 lakh per year.

Is there any limit on the no.of transactions one can do in a ppf account in a year ? Earlier there used to be max limit of 12 transactions per financial year but I think that was revised last year to as many transactions as one wants, however the amount that can be invested remains the same.

[warrioraks]

Is there a way to figure out the return rates for instruments being auctioned? This is a screenshot from Gobid platform, and as an example, it does not show the ROI for NWGS2022 - GS. Either on this page or the entire portal. Quick google search did not help either.

[RJK]

Guys,

On the subject, is it possible to invest in these bonds in offline mode? Reason is I would like to invest money that my little 10 months old daughter has received & she quite obviously does not have a demat account. My status is that of NRI, so that doesn't work either. I'm looking to invest this money for her future education etc, so tenure is upwards of 5-7years.

Thank you!

[SmartCat]

Originally Posted by RJK

On the subject, is it possible to invest in these bonds in offline mode? Reason is I would like to invest money that my little 10 months old daughter has received & she quite obviously does not have a demat account. My status is that of NRI, so that doesn't work either. I'm looking to invest this money for her future education etc, so tenure is upwards of 5-7years.

Those who want to invest offline can opt for RBI floating rate bonds - applications are available at bank branches
https://sbi.co.in/web/personal-banki...emes/rbi-bonds

But then, it says "NRIs are not eligible to make investments"

[RJK]

Originally Posted by SmartCat

But then, it says "NRIs are not eligible to make investments"

Thanks for that! Right, but the baby has money in her account accumulated as gifts from various folks & the mother (my wife) was a resident Indian for FY19-20 & will be so for 20-21 as well. So, in that case it should be possible to apply as a minor with wife being the guardian, right?

Thanks for your help!

[fordday]

India Opens Government Bonds To Individual Buyers

Till now it was open only for institutional buyers.

I understand the returns will be less but it will be safe.

Question is how safe it is? In todays financial markets, none can be trusted. What do experts here suggest?


Link

[SmartCat]

Originally Posted by fordday

India Opens Government Bonds To Individual Buyers. Till now it was open only for institutional buyers.

I don't get this article at all. Individuals could buy Govt bonds directly from the last 2 years. Using Zerodha account! I had even created a thread on this topic
https://www.team-bhp.com/forum/shift...-deposits.html (Government Bonds - Safer than even Fixed Deposits)

I understand the returns will be less but it will be safe. Question is how safe it is? In todays financial markets, none can be trusted. What do experts here suggest?

It is safer than SBI fixed deposit. It is the safest investment in India. Returns are guaranteed by the Govt/RBI. There can never be a default, because RBI can print "money" to pay you interest.

However, returns are not linear like a fixed deposit. If you exit before the maturity date, your returns can be higher or lower than the coupon rate.

[fordday]

Originally Posted by SmartCat

I don't get this article at all. Individuals could buy Govt bonds directly from the last 2 years.

FM explained that now the individuals can directly buy without intermediaries. Maybe that is the benefit they are projecting now. See the list para in the linked article.

Link

[Simhi]

Friends, RBI is now providing retail customers platform to directly purchase government securities via https://www.rbiretaildirect.org.in/. I am assuming we can purchase both short term (treasury bills) and long terms (gilt) bonds.

Can experts throw light on the pros and cons of purchasing directly from RBI vs taking the Gilt Mutual Fund route?

[SmartCat]

Originally Posted by fordday

FM explained that now the individuals can directly buy without intermediaries. Maybe that is the benefit they are projecting now.

But the intermediary (zerodha in this case) charges nothing for the investment in Govt bonds. So there is no real benefit as such. However, Zerodha Coin needs a demat account while RBI Direct does not.

Originally Posted by Simhi

Friends, RBI is now providing retail customers platform to directly purchase government securities via https://www.rbiretaildirect.org.in/. I am assuming we can purchase both short term (treasury bills) and long terms (gilt) bonds.
Can experts throw light on the pros and cons of purchasing directly from RBI vs taking the Gilt Mutual Fund route?

PROS:

- Gilt funds have a management fee (expense ratio) of around 0.3% pa. You can save this amount if you invest directly
- Gilt funds can have up to 50% in treasury bills and up to 100% in long term govt bonds. When you invest directly, you can choose your own percentage.

CONS:

- Fund managers have more experience than us in managing interest rates. They can shift to long/short term at the right time.
- Gilt funds usually diversify into state govt bonds too. So returns can be smoother/higher since state government pays higher interest to bond holders than central government. Eg:

[Simhi]

Originally Posted by SmartCat

- Fund managers have more experience than us in managing interest rates. They can shift to long/short term at the right time.
- Gilt funds usually diversify into state govt bonds too. So returns can be smoother/higher since state government pays higher interest to bond holders than central government.

@SmartCat, thanks for your inputs. Few more queries

1) Does "managing interest rate" come into picture when holding the bonds till maturity?
2) As per the FAQ, we can even invest in state government securities
Source: https://www.rbiretaildirect.org.in/f...il-direct.html

[EV NXT]

Originally Posted by SmartCat

But the intermediary (zerodha in this case) charges nothing for the investment in Govt bonds.

I have bought these floating rate GOI bonds by making a payment through an ICICI bank demat account.

The GOI bonds are shown in my Demat account. Could you please answer the following queries:

1. The bonds are issued with a “Certificate of Holding”.

2. This “Certificate of Holding” is signed by authorised signatories of ICICI bank and there is no signature of any RBI or GOI official - is this okay? How does one verify the authenticity of this certificate?

3. I have received the TDS certificate for these bonds. It says the payer of interest is ICICI bank. How can that be possible?

I have been looking to invest more in GOI bonds but these facts have made me feel a bit cagey.

The pic below is the TDS for the bonds: check the name of the deductor. There is also the name of bank official mentioned - is this okay?

Attachment 2232056

Thanks in advance!