Advantages and disadvantages of investing in gilts, Financial Management

Advantages and Disadvantages of Investing in Gilts


As the security is issued by the GOI, it has a minimal default risk.

Investors have the opportunity to invest in very long-term debt sometimes up to 20 years because of the long maturity periods.

Almost all issues by the government have adequate liquidity except for a few. With the primary dealer authorized to deal in the buying and selling, he can take care of the liquidity.


Tax benefits

Tax benefits under Section 80L upto Rs.3,000 are available with no TDS (tax deducted at source). However, this benefit has been withdrawn from the Assessment Year 2005-06.


The inflation will decrease the real return on the security and the possibilities of higher interest rates erode the value of the bond.


Posted Date: 9/10/2012 7:35:51 AM | Location : United States

Related Discussions:- Advantages and disadvantages of investing in gilts, Assignment Help, Ask Question on Advantages and disadvantages of investing in gilts, Get Answer, Expert's Help, Advantages and disadvantages of investing in gilts Discussions

Write discussion on Advantages and disadvantages of investing in gilts
Your posts are moderated
Related Questions
Question 1: Give an account of the role of governmental bodies and officials in the making of public policies. Question 2: What do you understand by the term "Governmen

Q.  A sum of $2,500 is deposited in a bank account that pays 5.25% interest compounded weekly. How long will it take for the deposit to double?  How long will it take you to accrue

Objectives and Functions of ASIC The objective of ASIC is to ensure the confident and informed participation of consumers in the financial system. To attain this objective, it

This case has been framed in order to test the skills in evaluating a credit request and reaching a correct decision. Perluence International is large manufacturer of petroleum and

R eceipt of bids and bid opening We discussed how to prepare the bids and to publish them in the earlier sub section. Now let us see how to receive and open bids. To receiv

Letter of Credit (LOC) A popular bank instrument begins that a bank has granted the holder an amount of credit equal to the face amount of the L/C. A bank guarantees payment of

challenges that the finance manager face in fulfilling the managerial function

Q. What is Deferred Incomes? Deferred incomes are incomes received in advance before supplying goods or services. They represent funds received by a firm for which it has to su

what are some of the skills in asmall scale business

Define the meaning of rate of return on investment An investment project which provides positive NPV when its cash flows are discounted by cost of capital makes a net contribut