What is the difference between G-Secs, T-Bills and SDLs?
G-Secs (Government Securities), T-Bills (Treasury Bills), and SDLs (State Development Loans) are all debt instruments issued by central or state governments in India. While they are all considered low-risk, they differ in tenure, liquidity, and interest profiles.
Comparison table
Feature | G-Secs | T-Bills | SDLs |
---|
Tenure | Long-term | Short-term | Long-term |
Liquidity | Low | High | Moderate |
Interest Rates | Moderate | Low | High |
Understanding key terms
- Tenure: Indicates how long your funds will be locked in until maturity.
- Liquidity: Reflects how easily the instrument can be bought/sold in the market.
- Interest rates: The returns offered; longer and riskier terms usually offer higher rates.
- T-Bills: Best for short-term, low-risk, highly liquid needs.
- G-Secs: Suited for long-term investors seeking stable returns.
- SDLs: Ideal for balancing duration with better interest rates and moderate liquidity.
What if...
Scenario | Resolution |
---|
You want high liquidity | Choose T-Bills; they’re more frequently traded and mature faster. |
You want better returns but lower risk than corporate bonds | SDLs can offer higher rates than G-Secs with state government backing. |
Review your investment horizon and liquidity needs before selecting an instrument. Use FYERS’ bond tools to filter and compare across instruments.
Last updated: 26 Jun 2025
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