Hai BRos
Anybody purchase GSEC for cash equivalent , tell me the experience
Because Lot Of gsec available in Discounted rate , i think to consider to buy GSEC
Your Opinion please
Bro i think u can buy LTGILTBEES and pledge it. It is trading at a low price now.
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I prefer investing in Kotak Gilt and SBI Magnum Gilt funds (for money I may need in 5+ years) instead of directly buying G-Secs. This helps me avoid the taxation of interest, the hassle of interest reinvestment, and makes pledging much easier. I’ve been using gilt funds over G-Secs since 2024, and the process is much simpler.
PS: I am not a financial advisor.
sbi magnum gilt fund have expense ratio of .41% its much higher - there is no cash flow in mutual fund , and some times gilt fund perform very poor - in direct we can get coupn rate credit to my bank account - no TDS
@subbu_setti currently i have good cash flow
i am reinvesting the interest amount to small and midcap MF
in right on side you can see the intrest amount credit to my bank account directly
i like the way of money is hitting on my account
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@subbu_setti compounding in GSEC is really a disaster - its will not compound like equity fund
Compounding is super only in equity mutual fund , and good growing stock
For your understanding -
I do not need cashflow and true gilts sometimes perform poorly, my XIRR in Kotak gilt is 4.81% and SBI Magnum Gilt is 6.46%. Expense ratio for most gilt funds is around 0.4%.
I am conservative prefer safety and do not take risk with money I may need in less than 10 years in equity.
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Not a recommendation please do Your own research before investing
refer : Zerodha Nifty 8-13 Yr G-Sec ETF | Invest in NFO
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GSec ETFs are not accepted as cash collateral in zerodha.