G-secs & SDLs!

Dated securities like Government Securities (G-Secs) & State Development Loans (SDLs) are issued by Central & State Governments respectively to raise funds. G-Secs tenure is between 1 to 40 years. These bonds have sovereign guarantee, so they are credit-risk-free instruments. However, they are prone to interest-rate risk which can be avoided if held till maturity. Retail investors can buy these bonds either offline or online through RBI Retail Direct or brokers. Investors can also consider gilt mutual fund schemes, which are a more convenient way to invest in G-Secs.