Kakande alex needs to clarify this issue. I do not think you can re_invest the cash flows payments from the Tbonds into the Same Tbond. The T_bond is more like a fixed deposit amount, which you cant not add on. If we would be adding money to the already purchased T-bonds, then one wouldnt necessirily need to purchase another T_bond.
On the other hand, one can put the cash flow payments accruing from the T-bond into the Unit trust/MMFs, which can then build up for buying a new T_bond.
Kakande alex needs to clarify this issue. I do not think you can re_invest the cash flows payments from the Tbonds into the Same Tbond. The T_bond is more like a fixed deposit amount, which you cant not add on. If we would be adding money to the already purchased T-bonds, then one wouldnt necessirily need to purchase another T_bond.
On the other hand, one can put the cash flow payments accruing from the T-bond into the Unit trust/MMFs, which can then build up for buying a new T_bond.
Is it possible to reinvest in the same bond? I need to understand well how this works. i will be very grateful.
1. But the fund management fee of unit trusts is on interest made not principle.
2. Reinvest in bonds is Manual and basing on an assumption that you'll get that same bond same conditions which is more theoretical than practical
How about the other factors favoring unit trusts over treasury bonds
1. Easier to setup accounts as well as fund - any amount at any time
2. Easier to withdraw when needed
3. Easier to track growth of investment - transparency
4. Better User experiences - look at UAP dashboard, FinTECH solutions like Xeno
For treasury bonds is better, but what l see it needs to be done by people who have money