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I'm interested in buying individual inflation-linked GILTs directly in the primary market (directly from the UK Debt Management Office).

To give some context, I want to do this as I understand the risks involved in holding shares of inflation-linked GILTs bonds or ETFs are radically different from those associated to actually hold the securities themselves. I extract this conclusion from this question I asked.

My question is: is it feasible for a retail investor to do this? By feasible, I mean 2 things:

  • First, being legally authorised to buy such bonds.
  • Second, having salary and savings enough to even consider the operation.

As far as I understand, in order to buy this bonds, one needs to be in the DMO's Approved Group of Investors. Is this something any UK resident can request, even if the person is not a broker or financial professional in general?

With regards to the first point, as an example, let's suppose a person earns £45000 yearly and has savings of, say, £40000. Would you say it is feasible for such person to access the mentioned securities, in terms of the minimum investment normally required?

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The DMO Approved Group of Investors scheme is administered by Computershare, and an application form for individuals can be downloaded from their website.

The form itself asks for standard KYC information. There are questions about income and assets, but there doesn't seem to be minimum requirements for either. It would seem that there is no formal barrier for an ordinary UK resident to join the scheme.

Comptershare also has an FAQ/chatbot, which may be useful.

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The requirements you linked are only to buy gilts directly from the UK Debt Management Office (probably to reduce counterparty risk and overhead) but there is a secondary market for gilts. You can buying them from someone that already owns then rather than from the government itself. It's just like buying stock through your broker - you aren't buying stock from the company, you're buying someone else's stock.

Check with your investment broker or bank to see if they offer gilts as an investment option.

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    I would like to buy them directly from the UK Debt Management Office if possible. I imagine buying them from a broker will come with some pentalty (ongoing charge, transaction cost, account maintenance, premium)
    – Martel
    Apr 3 at 19:16

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