Why G-Secs Merit a Place in Your Portfolio

What is a G-sec?

A G-sec is a debt security issued by the Government of India to raise funds for public spending. These are long-duration instruments, and the fund endeavours to replicate the index weights.

By investing in this fund, investors get access to a high-quality, low-credit-risk bond portfolio.

And if you do that through a G-sec index fund, you’re doing it in a diversified, low-effort way.

G-Secs carry relatively low to moderate credit risk in nature as they are backed by the government, making them suitable for investors seeking lower volatility in fixed-income investments.

Pro tip: You can use G-secs if you want to balance your portfolio.

Predictable income

G-sec Funds invest in a bundle of securities that will be paid back at known times, such as after five or ten years. This means you know what kind of exposure duration you’re getting.

By investing in G-secs you can plan better for future expenses and avoid surprises. You can also match them to your financial or long-term goals without needing to manage individual bonds.

Putting some of your investments into G-secs can add stability.

A balancing tool

Markets can be volatile. One day they’re soaring, the next they slide. G-sec index funds can complement your portfolio by balancing risk and diversifying asset allocation.

They can be a useful tool for asset allocation and interest-rate management, especially in medium- to long-term portfolios.

The G-sec mindset

G-sec index funds are for investors who value consistency alongside growth.

Investing in G-secs through an index fund gives you targeted duration, relatively stable income, and government-backed confidence in one simple package. It’s not just a financial move – it’s a way to build a more resilient investment strategy.

Disclaimers

This document is for informational purposes only and does not constitute investment advice or constitute an offer or solicitation to sell or buy any securities. This document is for intended recipients only. The views expressed herein are based on internal data, publicly available information and other sources believed to be reliable. The document does not have regard to specific investment objectives, financial situation and the particular needs of any specific person who may receive this document. Certain statements in this document may contain forward-looking information, including projections, estimates, and other statements regarding future events or the future financial performance of the Scheme. These statements are based on current expectations and assumptions and actual results may differ materially due to various risks and uncertainties. Neither the AMC, Trustee Company, sponsors or its affiliates nor any person connected with them shall accept any liability arising from the use of this document.

The recipient(s) before acting on any information herein should make his/her/their own investigation and seek appropriate professional advice and shall alone be fully responsible / liable for any decision taken on the basis of information contained herein.