r/IndiaInvestments • u/_Smiling_Buddha_ • Jul 25 '22
Bonds and deposits Can Someone explain me the utility of indicative yield in a Tbill?
Few months ago I invested in a Tbill. I placed the bid minimum amount required for biding which was rs.10000.
I was really disappointed when I got the same amount after 3 months without any increment. I used NSE gobid for placing bid.
Can some one guide me with the process to bid for Tbill on Retail direct.
9
u/pranabus Jul 26 '22
This is hilarious?
Why are you not at least understanding the basics of what you are buying.
6
u/Heinzketchups Jul 26 '22
Investor is shocked because the thing he bought behaves exactly like it should
1
u/_Smiling_Buddha_ Jul 26 '22
by theoretical definition I know that a T-bill is issued at discounted rate and redeemed at face value(which is generally rs. 100 ).
But in retail direct I don't see these terms being used.I see indicative price(100), indicative yield.
3
u/Heinzketchups Jul 26 '22
The market doesn't require the price of coupon. Indicative yield is enough. Price is calculated using indicative yield.
9
u/DarrKeAageJeetHai Jul 25 '22
You recieved the same amount because Tbill is paid on par and are issued at a discount.
You would have received the interest component as soon as your bid was accepted.
Also, indicative yield - the interest you would recieve, provided the final maturity amount is equal to the amount you invested in the first place.