scorecardresearchG-Sec STRIPS: Should retail investors opt for them to earn higher than bank FDs?

G-Sec STRIPS: Should retail investors opt for them to earn higher than bank FDs?

Updated: 17 Sep 2022, 03:00 PM IST
TL;DR.
These government securities refer to separating a bond into interest-paying coupon bond and principal components. Investors can explore them as an alternative to bank FDs to earn a higher return. Read further to get more details
They are created out of existing securities only and unlike other securities, are not issued through auctions conducted by the Reserve Bank of India (RBI). 

They are created out of existing securities only and unlike other securities, are not issued through auctions conducted by the Reserve Bank of India (RBI).