InvestorQ : Who should invest in gilt funds?
Siya Saran made post

Who should invest in gilt funds?

Answer
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Anusha Savla answered.
1 year ago


Gilt funds are funds which invest in a mix of government securities of varying maturities. Gilt funds are government securities issued by the Reserve Bank of India (RBI) having a specific tenure, in exchange for money to be lent to the government. As gilt funds only invest in government securities, they are the best option for those individuals who have low risk appetite. Gilt funds invest in low-risk debt such as government securities which ensures the preservation of capital along with moderate returns.

However, the capital protection comes at a cost of relatively lower returns. You cannot compare the performance of a gilt fund to that of an equity fund. Thus, gilt funds are perfect investment options to individuals who are risk averse.


user profile image
Anusha Savla answered.
1 year ago


Gilt funds are funds which invest in a mix of government securities of varying maturities. Gilt funds are government securities issued by the Reserve Bank of India (RBI) having a specific tenure, in exchange for money to be lent to the government.

As gilt funds only invest in government securities, they are the best option for those individuals who have low risk appetite. Gilt funds invest in low-risk debt such as government securities which ensures the preservation of capital along with moderate returns.

However, the capital protection comes at a cost of relatively lower returns. You cannot compare the performance of a gilt fund to that of an equity fund. Thus, gilt funds are perfect investment options to individuals who are risk averse.