Govt T bills

[iamdhamo]

Can you clarify which accounts are you referring to with no tax liability? I am curious.

I mean we can invest via parents acc if they don't come under tax slab

 

[iamdhamo]

That's true. But liquidity is a problem when it comes to tbills. So liquid funds are much better in that aspect.

True but I hold to maturity for 91d tbills

 

[paxauquabriba-4876]

What's the advantage of Tbill over say liquid funds that give similar returns? Both come under slab rate for taxation. Tbill is Sovereign guaranteed, but so are some liquid funds that invest mostly in govt tbills.

Personally, I find ease of investing in liquid funds better.

btw wondering the same, can you sell tbill like stocks or u are stuck with them until expiry ?

 

[iamdhamo]

btw wondering the same, can you sell tbill like stocks or u are stuck with them until expiry ?

We can sell but discounted rate just like stocks

 

[paxauquabriba-4876]

We can sell but discounted rate just like stocks

my guess is u can also sell them a higher rates too ?

 

[CARDBITRAGE]

True but I hold to maturity for 91d tbills

91 days is a lot of time. Liquid money should give you the option to cash out immediately. I invest a good chunk in tbills, but it's pretty much the put-it-there-and-forget-it kind of money. It gets credited into my account in 91/182/362 days and I will just repeat the cycle. I also put a good portion in liquid funds so that I can cash it out immediately when I find a good-looking deal in any of the asset classes. Besides, I hardly see any volume(in INR) so there is a weakness on the buy-side in tbills, so anything over a few Ls, you'd need to sell it at a price that would give a higher yield to a buyer. At one instance I picked up a big quantity(182d) at a ₹4.7 discount to coupon(~12% *annualised yield) from some poor sucker during the earlier days when the liquidity was negligible. The person needed to offload a huge quantity and was not finding any buyers for several days. And in the end, they conceded and sold it off at a reasonable loss. XD
Was the same story with SGBs too, until it was popularised. I miss those days when SGBs were trading at even a 10-15% discount to the spot price. Now it's selling at premiums!

 

[iamdhamo]

91 days is a lot of time. Liquid money should give you the option to cash out immediately. I invest a good chunk in tbills, but it's pretty much the put-it-there-and-forget-it kind of money. It gets credited into my account in 91/182/362 days and I will just repeat the cycle. I also put a good portion in liquid funds so that I can cash it out immediately when I find a good-looking deal in any of the asset classes. Besides, I hardly see any volume(in INR) so there is a weakness on the buy-side in tbills, so anything over a few Ls, you'd need to sell it at a price that would give a higher yield to a buyer. At one instance I picked up a big quantity(182d) at a ₹4.7 discount to coupon(~12% *annualised yield) from some poor sucker during the earlier days when the liquidity was negligible. The person needed to offload a huge quantity and was not finding any buyers for several days. And in the end, they conceded and sold it off at a reasonable loss. XD
Was the same story with SGBs too, until it was popularised. I miss those days when SGBs were trading at even a 10-15% discount to the spot price. Now it's selling at premiums!

True bro I also noticed the same. I m checking Listed bonds to buy at discounted price.
Since liquidity is more can buy them at discounted price

 

[iamdhamo]

my guess is u can also sell them a higher rates too ?

now a days yes trading at premium only after listing

 

[TheGuyTheGuy is verified member.]

my guess is u can also sell them a higher rates too ?

sure you can but why will i buy?
i can get it from RBI come thursday.
i can get liquid fund.

you can sell at higher price, just like stocks. But here no one should buy because there is constant new supply.

 

[avikrish]

10k will be debited. later after price auction some will be refunded. 10k- discovery price.

try getting tbill on retail direct. there is some extra charge on using coin platform.

If we use RBI Gilt direct, are annual reports are easy to download ? where we can download the annual reports (like ledger, profit and loss, tax pn; etc..) I am not sure if its a valid question, I do equity in upstox but not done any Tbills, but looking to diversify

 

[TheGuyTheGuy is verified member.]

If we use RBI Gilt direct

I have account there but not using it. mandate always used to get failed. Like, I would buy TBill- pay- and after thursday auction on friday my money will be returned back. I did not look more into this.

I started using Liquid Funds.

 

[avikrish]

I have account there but not using it. mandate always used to get failed. Like, I would buy TBill- pay- and after thursday auction on friday my money will be returned back. I did not look more into this.

I started using Liquid Funds.

Ok same like IPO then, these big players are not allowing retailers to earn money. Then what is the use of this portal, RBI should allocate separate quota for retailers , if this is the case. Thanks for the info.

 

[iamdhamo]

I have account there but not using it. mandate always used to get failed. Like, I would buy TBill- pay- and after thursday auction on friday my money will be returned back. I did not look more into this.

I started using Liquid Funds.

I buy via zerodha kite and it's allocated

 

[iamdhamo]

If we use RBI Gilt direct, are annual reports are easy to download ? where we can download the annual reports (like ledger, profit and loss, tax pn; etc..) I am not sure if its a valid question, I do equity in upstox but not done any Tbills, but looking to diversify

In zerodha there is option to download contract note statement separately for t bills where we can see the amt at which the tbill was allocated for us

 

[TheGuyTheGuy is verified member.]

RBI should allocate separate quota for retailers , if this is the case.

TBills have retail quota. I think all of your bids will be accepted. I saw this in their auction results. Retail gets 100% of their applications.