The Reserve Bank of India (RBI) has decided to allow retail investors easy online access to the Government Securities (G-Secs) market under its retail direct scheme.
In an interview with CNBC-TV18, Lakshmi Iyer of Kotak Mahindra AMC and Mohit Gang of Moneyfront discussed at length how exactly the scheme works and whether one should look at investing in government securities.
Iyer said that the central bank would have thought to make this available as an opportunity to the most liquid category of investments in India, which has the highest secondary market liquidity.
Meanwhile, Gang called it the most liquid and safe investment on the debit side. However, he added that there are doubts on the yield front and therefore that might not attract many investors and it might not even beat inflation.
"Real returns might not be that attractive," he said.For the entire discussion, watch the video