RETAIL INVESTOR will now be able to buy government bonds directly from RBI. Along with the credit policy review on Friday, the governor also announced that small investors will now be able to open accounts in RBI for transactions in government bonds. What does this announcement of RBI mean? What will change with the RBI announcement? Will this decision open a new path for SAFE and STABLE returns to the BOND market for small investors.
How to invest in government bonds We will understand the answers of all these questions from our experts. Feroz Aziz of AnandRathi Wealth Management and Lakshmi Iyer of Kotak Mahindra AMC have joined CNBC-Awaaz for a special discussion about this.
Feroze Aziz of AnandRathi Wealth Management
Giving his opinion on government bonds, Feroze said that the central government issues bonds that are safe from other bonds. He said that if interest rates increase or decrease in the market, then its interest rates can also increase or decrease. Therefore, the investors who remain in it till the end do not have to face much effect of the fall in interest rates. Apart from this, the removal of intermediary between the government and small investors is a good move of the government.
Laxmi Iyer opinion of Kotak Mahindra AMC
There is another very good way for investors to invest. But this time the investor has to pay attention that he has to keep his money invested for how many days. However, further clearing of taxation by the government can help investors.
RBI declaration on government bond
The RBI has announced that retail investors will be able to buy, sell government bonds. After this, investors will be able to open a gilt account directly with the RBI. Can open accounts in RBI’s e-Kuber system. RBI has said that investors will be able to trade online in both primary and secondary markets. Rules related to retail investors will be announced later.
How to invest in government bonds now
Currently, retail investors in government bonds can invest in MFs linked to G-SEC. Apart from this, banks can bid in certain segments through exchange. Retail investors can take bonds through brokers.