Bonds, G-Secs & Debt Funds

A bond is a loan. The Government of India, a state, or a company borrows; you (or a fund) are the lender. You typically receive a coupon (interest) and face value at maturity. If you sell before maturity, the price moves with yields — that is interest-rate risk, not a stock chart pattern.

This lesson is literacy only. This site does not screen bonds, rank yields, or hold gilts in the paper portfolio.

• T-bills: Short-term government paper (91/182/364 days), usually issued at a discount rather than a running coupon.
• Dated G-Secs: Longer government bonds with a coupon; the 10-year G-Sec is the common benchmark yield people quote.
• SDLs: State Development Loans — state government securities, typically a little higher yield than comparable G-Secs.

Retail investors can access primary auctions and a secondary gilt window through RBI Retail Direct (a gilt account with RBI), or via exchange-traded G-Secs on a broker platform. Always verify the current process on official RBI / NSE pages — this is not a how-to for placing an order.

• Corporate bonds / NCDs: Credit risk sits with the issuer. Higher coupon is not “free return.”
• Buying one G-Sec: You pick a maturity and live with its price until you sell or it matures.
• Gilt / debt mutual fund: You own units at NAV. The fund holds many bonds; duration and credit mix change. Liquidity is usually via redemption, not a single ISIN on the tape.

Equity vs debt funds are covered in Mutual Funds, SIPs & ETFs. Do not treat a gilt fund like a fixed deposit.

SGBs paid a small coupon on top of gold-price exposure. New primary tranches have not been issued since 2024; existing holdings still trade or run to maturity under their original terms. For gold exposure today, people usually compare physical gold, gold ETFs, and gold funds — each with different costs and tracking. This is not a recommendation.