Gilt Funds

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Gilt Funds

Gilt Funds are a type of debt mutual fund that invests in government securities, also known as G-secs. These securities are issued by the central or state governments and have no credit risk as they are backed by the government's ability to raise taxes and print money. Here are some features of Gilt Funds:


Low Risk: Gilt Funds have a low credit risk as they invest in government securities that are backed by the government's ability to raise taxes and print money.


Regular Income: Gilt Funds provide regular income to investors through the interest earned on the underlying government securities.


Diversification: Gilt Funds provide diversification benefits to investors as they invest in a mix of government securities across different maturities.


Liquidity: Gilt Funds have higher liquidity than long-term debt funds as the securities have a relatively short-term maturity period.


Overall, Gilt Funds can be a suitable investment option for investors who are looking for low-risk investment options with regular income. However, investors should be aware of the interest rate risk associated with these funds and consult with a financial advisor before making any investment decisions.


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