Wednesday, October 26, 2011

What Benefits Can An Investor Derive by Investing in Treasury Bills?

  • It is an absolutely risk free investment, since it is issued by the sovereign government. Hence, they are called gilt-edged securities meaning that they are covered by gold.
  • You can get the highest rate of interest since the yield rates are determined in the market.
  • Since these bills are tradable in the secondary market, you can obtain instant liquidity by selling them in the market.
  • All receipts of maturity proceeds and capital gains are fully repatriable.
  • You could also have a joint investment with some other person or persons. Hence, it is a very good way to share your investments with loved persons.
  • You are not subject to further taxation, since a withholding tax of 10 percent is charged at source is the final tax.
  • No stamp duty is payable on these bills.
  • You can get the best service from the CBSL which maintains your investment in its state of the art, Scripless Security Settlement System and the fully automated Central Depository System (CDS).

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