Treasury Bills Explained | What Are Treasury Bills(T-bills)? | Finance With Vishal | #shorts
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Treasury Bills Explained | What
Treasury Bills Explained | What Are Treasury Bills(T-bills)? | Finance With Vishal | #shorts
Follow link for open Demat & Trading account in Upstox.
https://bv7np.app.goo.gl/HKwY
In India, Treasury Bills, often referred to as T-Bills, are short-term debt instruments issued by the Government of India to raise funds for its short-term financial needs. These bills are considered one of the safest investment options in the country because they are backed by the Indian government. Here's a brief overview of Treasury Bills in India and why investors may choose to invest in them:
*1. Types of Treasury Bills:* In India, there are primarily three types of Treasury Bills based on their maturity periods:
- 91-Day T-Bills
- 182-Day T-Bills
- 364-Day T-Bills
*2. Issuance:* T-Bills are issued through auctions conducted by the Reserve Bank of India (RBI) on behalf of the Government of India. These auctions are typically held every week.
*3. Safety:* T-Bills are considered one of the safest investments because they are backed by the full faith and credit of the Indian government. This means that the principal amount invested in T-Bills is guaranteed.
*4. Liquidity:* T-Bills are highly liquid instruments. Investors can buy and sell them in the secondary market before their maturity date.
*5. Returns:* While T-Bills are relatively low-risk investments, they offer competitive returns compared to traditional savings accounts and fixed deposits. The interest earned on T-Bills is the difference between the face value (the amount you invest) and the amount you receive at maturity.
*6. Tax Benefits:* T-Bills enjoy tax advantages in India. The interest income from T-Bills is subject to taxation under the income tax laws, but there are tax-saving options available such as the 7.75% Savings (Taxable) Bonds, 2018, which provide tax benefits.
*7. Diversification:* T-Bills can be a valuable addition to an investment portfolio as they provide diversification and stability, especially when other investments may be subject to market volatility.
*8. Short-Term Investment:* T-Bills have short maturities, making them suitable for investors looking for short-term parking of funds or those seeking a safe option for their surplus cash.
*9. Easy Investment:* Individuals can invest in T-Bills through primary dealers, banks, or financial institutions. The process is relatively straightforward.
*10. Regular Income:* Investors looking for regular income can invest in T-Bills with staggered maturities to create a steady stream of income.
It's important to note that while Treasury Bills are considered safe investments, they may not offer the same level of returns as riskier investment options. Investors should carefully consider their financial goals, risk tolerance, and investment horizon before deciding to invest in T-Bills or any other financial instrument.
For more details visit rbi website
https://www.rbi.org.in/Scripts/FAQVie...
*DISCLAIMER* The videos are strictly for educational purposes and do not provide any advice/tips on Investment or recommend buying and selling any stock. We neither take guarantee of profit nor stand responsible for any losses of any recipient. The recipients of this material should take their own professional advice before acting on this information the recipient is advised to read the information carefully before any investment.
*** Disclaimer- Some contents are used for educational purpose under fair use. Copyright Disclaimer Under Section 107 of the Copyright Act 1976, allowance is made for "fair use" for purposes such as criticism, comment, news reporting, teaching, scholarship, and research. Fair use is a use permitted by copyright statute that might otherwise be infringing. Non-profit, educational or personal use tips the balance in favor of fair use. All credit for copyright materiel used in video goes to respected owner.
[ Thanks For Watching This Video ] Don't Forget To Like, Comment, Share & Subscribe
Email :- [email protected] ----------------------------------------------------------------------------------------------------------------------------------------------------------------------
Follow link for open Demat & Trading account in Upstox.
https://bv7np.app.goo.gl/HKwY
In India, Treasury Bills, often referred to as T-Bills, are short-term debt instruments issued by the Government of India to raise funds for its short-term financial needs. These bills are considered one of the safest investment options in the country because they are backed by the Indian government. Here's a brief overview of Treasury Bills in India and why investors may choose to invest in them:
*1. Types of Treasury Bills:* In India, there are primarily three types of Treasury Bills based on their maturity periods:
- 91-Day T-Bills
- 182-Day T-Bills
- 364-Day T-Bills
*2. Issuance:* T-Bills are issued through auctions conducted by the Reserve Bank of India (RBI) on behalf of the Government of India. These auctions are typically held every week.
*3. Safety:* T-Bills are considered one of the safest investments because they are backed by the full faith and credit of the Indian government. This means that the principal amount invested in T-Bills is guaranteed.
*4. Liquidity:* T-Bills are highly liquid instruments. Investors can buy and sell them in the secondary market before their maturity date.
*5. Returns:* While T-Bills are relatively low-risk investments, they offer competitive returns compared to traditional savings accounts and fixed deposits. The interest earned on T-Bills is the difference between the face value (the amount you invest) and the amount you receive at maturity.
*6. Tax Benefits:* T-Bills enjoy tax advantages in India. The interest income from T-Bills is subject to taxation under the income tax laws, but there are tax-saving options available such as the 7.75% Savings (Taxable) Bonds, 2018, which provide tax benefits.
*7. Diversification:* T-Bills can be a valuable addition to an investment portfolio as they provide diversification and stability, especially when other investments may be subject to market volatility.
*8. Short-Term Investment:* T-Bills have short maturities, making them suitable for investors looking for short-term parking of funds or those seeking a safe option for their surplus cash.
*9. Easy Investment:* Individuals can invest in T-Bills through primary dealers, banks, or financial institutions. The process is relatively straightforward.
*10. Regular Income:* Investors looking for regular income can invest in T-Bills with staggered maturities to create a steady stream of income.
It's important to note that while Treasury Bills are considered safe investments, they may not offer the same level of returns as riskier investment options. Investors should carefully consider their financial goals, risk tolerance, and investment horizon before deciding to invest in T-Bills or any other financial instrument.
For more details visit rbi website
https://www.rbi.org.in/Scripts/FAQVie...
*DISCLAIMER* The videos are strictly for educational purposes and do not provide any advice/tips on Investment or recommend buying and selling any stock. We neither take guarantee of profit nor stand responsible for any losses of any recipient. The recipients of this material should take their own professional advice before acting on this information the recipient is advised to read the information carefully before any investment.
*** Disclaimer- Some contents are used for educational purpose under fair use. Copyright Disclaimer Under Section 107 of the Copyright Act 1976, allowance is made for "fair use" for purposes such as criticism, comment, news reporting, teaching, scholarship, and research. Fair use is a use permitted by copyright statute that might otherwise be infringing. Non-profit, educational or personal use tips the balance in favor of fair use. All credit for copyright materiel used in video goes to respected owner.
[ Thanks For Watching This Video ] Don't Forget To Like, Comment, Share & Subscribe
Email :- [email protected] ----------------------------------------------------------------------------------------------------------------------------------------------------------------------
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