Zerodha, a discount brokerage firm, has started offering government securities through its platform aimed at investors who mainly invest in fixed deposits and debt mutual funds.
In a press release, Nithin Kamath, Founder & CEO, Zerodha, said, “Government securities offer better returns compared to bank FDs but most people are not aware of this aspect. With our new offerings, we would like to explore the market potential for such products.”
“In India, people generally like to invest in fixed deposits or debt mutual funds due to lack of awareness about the returns on government securities. We hope that people will start looking at them as a potential investment option in future.” adds Nithin.
Government securities are guaranteed by Govt of India and are virtually risk-free,if held to maturity.
The exchanges in collaboration with RBI has recently made it possible for retail investors to start investing in government securities, mainly the long-dated bonds and the treasury bills (T-bills). Earlier these securities were available only to banks and large financial institutions, but now retail investors can invest in them and take advantage of attractive and guaranteed returns.
