•  G-sec offer decent yields for longer duration Currently G-sec offer yields ranging from 8.00 per cent to 8.30 per cent and the tenor of securities extend up to thirty years. With government issuing securities at different points on the yield curve, G-sec offer an attractive option for savers who need low risk investment options for longer durations.
•  G-sec offer prospect of capital gains As there is an inverse relationship between bond price and interest rate, there is a prospect of capital gains when the interest rates moderate. One, however, must be conscious of market risks that could result in losses in case the interest rate cycle reverses.