• Investors usually consider fixed income investments for their ability to generate regular more predictable income with relatively lower risk levels.

• The fixed income instrument space today, offers more attractive investment propositions – higher return potential with low credit risk

• Government securities investments offer a dual advantage of elevated yields coupled with long-term capital gains potential. All of this while still maintaining negligible credit risk owing to their sovereign rating.

• Government securities are available at elevated yields at the 10-year mark today. In fact, they are at multi-year highs and expected to be impacted by rate cuts going forward.

• There is also a demand-supply imbalance presenting in the G-sec space. Heightened demand due to increasing FII inflows post inclusion in global indices coupled with reduced supply due to fiscal consolidation reducing borrowings. This is likely to further lower yields creating an opportunity for capital gains.

• As an investor how can you rightly access this lucrative G-sec market?

• -As the G-sec yield curve is elevated at the 10-year mark, a fund that tracks the most recently issued and most actively traded G-sec of the 10 Year elevated yield mark can increase the potential of investor gains.

• The Aditya Birla Sun Life CRISIL 10 Year Gilt ETF is a debt exchange traded fund that tracks the CRISIL 10 Year Gilt Index. Thus, this fund invests in the on-the-run 10-year benchmark G-sec. Being available at an elevated yields with the added benefit of capital gains potential, gives this fund the potential to offer better returns than traditional fixed income means while maintaining negligible credit risk for investors.

• The ETF investing model also brings added advantages of ease of trading, low minimums, and high liquidity.

Click here to view the Aditya Birla Sun Life CRISIL 10 YEAR GILT ETF Unit Creation