Do you recommend the 8% Govt of India bonds in the current falling interest rate market? What are the advantages and disadvantages?
You can invest in such bonds if you are committed to hold until maturity. Because as the bond’s maturity is long term, they are volatile in nature for interest rate movement. Hence, think of your requirement and then jump. Currently, they may look attractive. However, if you try to sell in middle, then it depends on the interest rate cycle of that day.