For F&O cash component
What are pros and cons of Govt securities ?
For example 9.20% G.S. 2030 @TradeB2B @Prayag @Rejeesh_Mathew @rupeshmandal @Vij @arunt @pankushri @sachinsp15
For F&O cash component
What are pros and cons of Govt securities ?
For example 9.20% G.S. 2030 @TradeB2B @Prayag @Rejeesh_Mathew @rupeshmandal @Vij @arunt @pankushri @sachinsp15
I might be wrong (please correct in this case);
Interest on government securities is taxable at the persons slab rate, so for someone who comes under 30% tax bracket, that’s a con.
Hi @curiousvi
Before buying g sec -
Pros -
Cons -
Taxes -
Please refer to this link:
Overall conclusion - Gsec can be good bet for cash component if intended to held till maturity.
Interest rate on govt securities is taxable at personal slab rate and capital appreciation is taxed at capital gains rate but if you invest through gilt funds than it is considered capital gain/loss because interest is not paid in to your bank account.
Not sure if that is a better route to invest in gsec ? Those funds expense ratio are not much.
@sachinsp15 @rupeshmandal