News flow around index inclusion has periodically generated frenzy and despair in bond markets over the past few years. In this context, one may look at additional ways to promote domestic retail demand for government securities (G-Sec) including SDLs (state development loans). As per June 2022 data from the Reserve Bank of India (RBI), mutual funds own around 2.32% of outstanding G-Secs, 1.89% of SDLs and 14.86% of Treasury Bills. The space for direct ownership of these through MF schemes remains appealing and holds a lot of potential. Apart from the tax efficiency, the broader theme remains that of owning a credit risk-free asset class at relatively attractive yields. It may be time to revisit these as one makes an asset allocation decision.