What are Gilt funds What are gilt funds? Gilt funds are type of a debt mutual fund which invest in Government Securities issued by the Reserve Bank of India (RBI) on behalf of the government. Since these are govt securities the Credit risk involved in these funds are considered as safest. Gilt funds are different types based on maturity. It can be medium to long duration maturity period. Depending on requirements Govt of India can borrow money from RBI by paying interest on borrowing which is normally related to the yield maturity for that period. What are the risks in gilt funds? With the recent Franklin Templeton debt fund issue , investors are worried about their investments in debt funds and asking Are debt funds safe? So are gilt funds safe ? Yes gilt funds are safe to invest from a credit risk perspective as the gilt mutual funds only invest in govt securities. These funds are very good if you invest in these funds for a medium to long...
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