Government-backed Investments

The government of India issues Bonds from time to time. These are tradeable and fungible government securities or G-Secs.

They are practically risk-free and are considered to be one of the safest investment options.

PSU Bonds are the Public Sector Undertaking Bonds issued by the Public Sector Undertakings. The Indian Government has at least 51% or more stake in these public Sector Undertakings (PSUs).

Some PSUs also issue certain bonds under Section 54EC also known as Capital Gains Bonds for a period of 5 years.

Benefits of Investing in Government and PSU Bonds

Risk Free Investment Instruments

Easy Liquidity with Secondary Market access.

Good option for medium to long term period

Save Capital Gains Tax with Section 54EC Bonds