Consider G-Sec STRIPS to lock in returns for very long tenures: Experts

Since this is a nascent category to invest, there could be liquidity risk

Investors who want to invest in a sovereign-backed instrument which offers better returns than fixed deposits, may consider a product called G-Sec STRIPS (STRIPS stands for separate trading of registered interest and principal securities).

However, since this is a nascent product category, understand its pros and cons well.

Created from G-Secs 

Both G-Secs (government securities) and G-Sec STRIPS are issued by the Reserve Bank of India (RBI) and have sovereign backing. G-Secs pay investors a half-yearly coupon. An investor who invests in, say, a five-year G-Sec (coupon rate, say, 7 per cent) receives 10 coupons, and the principal at the