The generally risk-averse high net worth population of India is finding some degree of safety in allocating a significant chunk of their money on quasi-government bonds, the Economic Times (of India) said.

Popularly described as "risk-free", quasi-government bonds like the India Infrastructure Finance Company's tax-free bonds and Nabard's deep-discount bonds are in high demand, as investors shy away from regular bank products whose rates are sensitive to market movements and interest rate changes.

According to the news service, India's wealthy investors are placing 20 to 25 per cent of their investible wealth into these bonds, some even going as high as 40 per cent. Nabard's 10-year bonds, for instance, have seen a trading growth to 8.5 per cent, while activity in IIFCL's bonds is up at 6.7 per cent.

"We are recommending these bonds only to those investors who are willing to stay invested in them for a longer period. The risk-free profile of these bonds make them all the more attractive," IIFL Private Wealth Management chief executive officer Karan Bhagat was quoted as saying,

The search for lucrative investment avenues is the talk within India's financial industry, especially with the country emerging as one of the key areas with a largely untapped high net worth market.