Gild Your Portfolio

Philosophy

Invest in the best Sovereign Papers and construct your Risk-Free Portfolio.

Add Gilts to Your Porthfolio

  • Gilts Means Gold in Latin.
  • The importance of gold is from stone age, the reason being gold is the only metal which cannot be evaporated by any atmospheric changes.
  • Government securities(G-secs) are sovereign securities which are issued by the Reserve Bank of India on behalf of Government of India, in lieu of the Central Government’s Market Borrowing Programme.
  • Principle and Interest both are Unconditionally & Irrevocably guaranteed by Government of India.
  • G-Secs carry practically No risk of default and hence are called risk-free gilt-edged instruments.

Who can Invest

  • Suitable for Investors with a medium to long-term, 3 years plus investment horizon will be tax efficient.
  • Individuals | HUF | HNI | Corporate | Co-op Societies | Associations Provident Fund | Banks | Trust (Blanket Permission)

Sample Data For G-Sec & Fixed Deposit

TENOR G-SEC RATES FD RATES (IN %)
3-5 Years 5.25% 5.70%
5-10 Years 6.00% 5.75%

Gilts Score Over Bank Deposits

PARTICULARS G-SEC FIXED DEPOSIT
Issuer Government of India Bank
Tenure 1-40 Years 7 days to 10 Years
Interest Payment Semi-annually At maturity or Periodically as opted by investor
Returns Higher compared to Fixed deposit Lower compared to G-sec
Holding & Liquidity It can be held in Demat Form and Can be sold in Secondary Market Only in Phyisical Form and Premature exit possible with penalty on interest payment
Loan facility if any Available via Pledge , hypothecation or lien Overdraft against FD.
Safety Backed by Government of India Insured up to INR 5 Lakh by DICGC, beyond which FDs are unsecured.
TDS No TDS deducted TDS deducted on Interest Income above 5000/-
Possibility of Capital Gain/Loss Investor can earn Capital Gain by Existing at opportune time. Capital loss through possible can be Avoided by holding tillMaturity No Capital Gain
Pre Tax Return – Taxfree 20.80% Tax Slab – 6.95% 31.20% Tax Slab – 8.00%

Process & Services

  • KYC
  • Settlement of Deals
  • Periodic Reports : Valuation / Interest Report / Trading Report
  • Periodic review of Portfolio
  • Website & Mobile App Support for updates & Reports.

ANYTIME IS A GOOD TIME

TO INVEST IN GOVT SECURITIES.

Features & Benefits

Significance

  • G-Sec are fixed maturity and fixed coupon securities
  • They are issued and redeemed at par (face value).
  • Attractive returns with Zero default risk being a sovereign paper

Interest Payment Criteria

  • Days count is 360 for payment of Interest.
  • Regular Semi Annual Interest
  • No Tax Deduction at source.

Liquidity

  • Highly liquid as active secondary market.
  • Transparency in transactions
  • Simplified & Transparency in transactions
  • Can be Held in Demat account same as Equity

Loan against collateral

  • Pledge, hypothecation and lien may be created to avail loan facility by keeping such securities as collateral.

Possibility of Capital Gain

  • Investors can earn capital gain by exiting at opportune time.
  • Capital Loss through possible can be avoided by holding till maturity.

Disclaimer

In the preparation of the material contained in this document, the company has used the information that is publicly available. The company however does not warrant the accuracy of any information. The information set out is for general information purpose only and does not constitute legal or tax advice. The Company including director & employees shall not be liable for any loss or profit in any way arising from the use of this material. This should not be construed as an offer to buy or sell the securities. Any copy of the concept be it in full or a part will not be considered as an ethical practice. Past performance of the Scrips/Schemes does not guarantee similar future returns.

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