InvestorQ : I understand that G-Secs being issued by the government are entirely risk-free. Does it mean it is a totally risk free instrument?
Ria Jain made post

I understand that G-Secs being issued by the government are entirely risk-free. Does it mean it is a totally risk free instrument?

Answer
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2 years ago
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G-Secs are usually referred to as risk free securities. However, these securities are subject to only one type of risk i.e., interest-rate risk. Subject to changes in the overall interest rate scenario, the price of these securities may appreciate or depreciate.

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